Need Advice: Software testing career

Hi,
I completed MCA in 2007 got first job as software tester overseas with reasonable salary. Profile includes mainly white box testing and QA activities. I have received very good comments about my work from my seniors in last two years. But now i am in dilemma whether i picked correct career as software tester against the suggestions of my friends. Company is renewing contract however the salary increase they are offering is just a joke. Reason, we cannot give more than this to a "SOFTWARE TESTER". I asked few of my friends (all are developers) back in India their salary has been increased by quite a good amount in last two years. I am very good at c++, VB and VB .net also. Could you please clarify my following doubts?
1. Should i continue my career as software tester or should i try to move to software development?
2. What is the actual career growth of a software tester?
3. Should i consider to quite this company come back to India and continue working as software tester?
Advice will highly appreciated.
Vikas