Historically police states like Nazi Germany or Mao's China operated by being well organized at all levels of society. India is absolutely not well organized at all levels of society. Instead India seems optimized for the petty bribe seeking bureaucrat. It's not the all knowing police state. It's the disorganized mafia state.
I had an easier time getting a work permit in Russia last year than India. The sheer amount of paperwork and rubber stamps required for my Indian work permit was the worst I have ever had to deal with and I've worked all over the world. All of this paperwork and stamping allows perfect opportunities for small time bureaucrats to extract bribes and favors from people who just need to get something done. So when I look at something like requiring ID to use wifi I don't see Total Information Awareness. I see Tammany Hall and a genius system that's operating exactly as it was designed, to extract graft from normal people at every possible opportunity.
Disclaimer: I lived in India for 0.5 years in '99 and recently worked there again in 2011 for a month. My answers are based on these experiences and of knowing lots of Indians frustrated with their government.