The Marathas could plausibly satisfy the first two conditions, and of course the last, but the third would have been difficult - 18c India did not have much surplus that could fund industrialization; even Egypt, which was better-placed for this per Robert Allen, had to take out loans.
This is digging back a bit in the thread, but why is India necessarily lacking in the resource base for industrialization? They have a very large population, they had a very large trade surplus until the British took over with a major import of silver, a sophisticated financial and trade system, their agricultural base produced food at significantly cheaper cost than their European equivalents (according to "Rethinking Wages and Competitiveness in the Eighteenth Century: Britain and South India", 90 pounds of rice in India was equivalent in cost to 75 pounds of British wheat - the country with the most developed agricultural base in Europe - which had calorically the value of 45 pounds of rice, which therefor meant the cost of food was dramatically cheaper and therefor wages were relatively lower, thus enabling Indian manufactured goods to have a significant advantage over European equivalents) and with land-taxes taking up to 50% of the peasant's crop as tax (there was also productivity by land which the paper estimates as higher than the British 900-1000 pounds per acre, perhaps rice levels of 1500-1750), it seems like they'd be able to have the resources necessary for the creation of a sufficient industrial base. They had around ~25% of the world's manufacturing base under some accounts of world manufacturing output, so the base that exists is already good too. The revenue was growing under the Mughals continuously, from "A History of Modern India 1480-1950", the tax base increased by two and a half by the 18th century before the Mughal Empire started to decline. This also saw large increases in the monetization of the economy, with India's trade surplus resulting in major silver influxes from Europe that essentially replaced copper from my recollections.
But this isn't a question of hostility, I'm more interested in if the author cited a reason why.
It definitely seems interesting. Does that part of India have significant coal/iron like modern day Orissa or Jharkhand states have, though? There's also the issue that they need a continued succession of good rulers. Was their internal organisation anything workable? Because I know the Maratha and I believe the Mughals too had something akin to the Holy Roman Empire in Europe (hence why the Maratha are called the "Maratha Confederacy" sometime), which definitely isn't good for modernisation.
https://en.wikipedia.org/wiki/Coal_mining_in_India#Distribution_of_coal_reserve_by_states.5B2.5D
I don't know how these are distributed (I've tried in vain to find something like the "
The Iron-Ore Resources of Europe" , or "
Iron and Associated Industries of Lorraine, the Sarre District, Luxemburg, and Belgium" which is even better), but if those are correct then a South Indian state, especially if it takes a significant portion of Tamil Nadu, will be well set for its coal supplies. For comparison the 1913 supplied of the German Empire and France are respectively 53,344,000,0000, and 4,120,000,000, which if I am converting correctly is less is less than Tamil Nadu's supplies alone. On the other hand, there seems to be but limited actual production there, so perhaps either reserves are wrong, or coal quality is bad, or it is difficult to extract. But there are some mines there at least, as well as in Maharashtra.
South India also has good timber supplies (good for shipbuilding; to add on to previous comments about the Mysoreans and their navy I'd recommend
British seapower and the Mysore wars, where apparently timber supplies were of sufficient quality to cover most all shipbuilding capacities; quantities were also very extensive, form my recollection most British south Indian railroads were timber-fired.
According to "A History of Modern India 1480-1950", the principal iron-working regions were Assam, Mysore, Gujart, Berar, and Kashmir (these were iron regions, the link to coal wasn't yet established so iron was the principal economic agent and wood used for fuel - I presume, that was the case in Europe at least - instead of coal being the determinant of metal-working economics), with Golconda having the best iron product quality in India.
So I think Mysore should be well set for resources, but I'm still figuring out their exact degree of political centralization. It did appear centralized under Hyder Ali and Tipu Sultan, with a professional army and the imposition of direct taxation (Tipu Sultan implemented direct tax collectors instead of the previous indirect affair), but I'm still foggy on their long term and how much those two leaders were radical breaks or evolutions.
South India does have advantages over Northern India in that its caste structure seems to have been less strong and more fluid, and they were more integrated into the world economy, more maritime and less land-based. Its important to note that the caste system wasn't as rigid before the British took over, the policies of whom resulted in racialized and administrative aspects of it being created, but there is the potential problem in that in southern India overseas mercantile affairs principally are in the hands of certain religious groups, these being the Muslims, Christians, Jews, Armenians, and Jains, who don't have the black-water taboo that Hinduism has. Such a fragmentation seems like it would create problems for the states to effectively engage with the sea in the long run, although as noted rulers like Tipu Sultan (admittedly, he was Muslim) did manage to deal with this.
I personally think that if modernization happens in India, it is most likely to happen with a southern state, although this might be bias; I've been involved in a separate site playing along on these lines, and I've grown rather attached to the idea.