And this is in, arguably, one of the richest cities in America.
So while this situation (homelessness, mental patients going without care, hunger), how dare the USA spend so much money on a Mars mission? On the military? Heck, why does the City of SF spend so much money on America's Cup, Outsidelands, etc. when thousands of people are homeless and on the streets? Yes, you may say that the City spends money on them too; but then why are they still on the streets?
Do you see my point? If you were to apply the same logic (or lack thereof) that you're applying to India to any other country (even the US), you will get the same answer: don't spend money on anything.
BTW: India is not "taking handouts" from other nations[1]. India is actually _giving_ handouts to others; e.g., they've given billions in aid to Afghanistan to aid in its re-construction.
[1] http://www.vaughns-1-pagers.com/politics/us-foreign-aid.htm couple of 100M doesn't qualify as a "handout" for a country the size of India. That's like me donating $5 to Obama's campaign and then expecting him to have dinner with me. WikiPedia link of top 25 countries; India does not feature in them: http://en.wikipedia.org/wiki/United_States_foreign_aid