First, she claims that the standard of living in India is plummeting and goes on mentioning slums, filth, corruption, bureaucracy etc. If one checks the recent national census and other survey results, the poverty has been steadily declining [1], the illiteracy has sharply declined [2], Indian consumers are the most optimistic in the world! [3], and ironically - Indian entrepreneurs are the most optimistic in the world! [4]. The rest of her complaints are just nitpicks.
Second, the notion that happy existence or perfect system is the prerequisite to creativity and success. This is false. If one studies Anthropology, creativity/art/culture/economic-activity/entrepreneurship exist everywhere, even in the most failed country. It is the nature of man to grab every little opportunity. The fact that Mercedes has opened R&D centre in India only shows their creativity, their ability to grab the opportunity and their entrepreneual spirit. More power to the potholed roads! There's nothing called perfection in this universe.
Third, not a criticism but, one doesn't need to be overly pessimistic. India and other emerging economies are yet to see several decades of growth. Especially India and China, because of their huge population, will continue to see high economic growth for very long (ask any economists) [5][6]. And no, the moral suffering due to inequality will not disappear anytime soon. China even after growing at a breakneck speed of 10% a year for last three decades and pulling millions of people out of poverty has more inequality than India (Gini coefficient) [7]. I think we'll just gradually evolve to live with it.
[1] - http://www.moneycontrol.com/news/current-affairs/indias-pove...
[2] - http://www.deccanherald.com/content/150267/indias-literacy-l...
[3] - http://www.afaqs.com/news/story.html?sid=30621_Indian+consum...
[4] - http://docs.google.com/viewer?a=v&q=cache:5wJKiOx4osAJ:w...
[5] - http://www.livemint.com/2011/05/25191535/India-could-be-worl...
[6] - http://www.deccanherald.com/content/140463/india-likely-worl...
[7] - http://en.wikipedia.org/wiki/File:Gini_Coefficient_World_CIA...