A lot of people complain about traffic. You know the salary of a driver on a monthly basis? About $100-250 (depending on the car you drive).
Bureaucracy is killing. Takes 3 months to incorporate. But do you know how much accountants charge in India to take care of all your business details? A startup probably won't have to pay more than $150 a month on an accountants fees.
Things are so cheap in India that you can live an extremely shiny life on the same budget at which an entrepreneur struggles to feed his family in USA.
But yes - a lot of the things are broken in India if you don't have the little bit of money required to throw at it to fix it. On the bright side: the pace of improvement is staggering (I mean - Indian literacy rate went from 65% to 75% in 10 years. Thats 650 million literates in 2001 to 900 literates in 2011! Still not awesome. And college education is still lacking in many places. But the speed of improvement is staggering.)
Disclosure: I'm a glass-half-full kind of an Indian who studied in USA but is now living in Bombay working on a startup.