If all intermolecular forces are electrostatic in nature, why don’t large non polar molecule dissolve in water?
Dipoles can be induced, but they are not permanent. You’re basically asking why a spring doesn’t like to stay compressed when you push on it—it's because that’s not its most stable position. The electron density around  hydrogen in a $\ce{C-H}$ bond is much higher than the hydrogen in a polar $\ce{O-H}$ bond, so electrostatic repulsions overwhelm any attractions that may be induced. See the diagram below$[1]$:





$[1]$ Bond polarity diagram - Iverson Group UT Austin