You are absolutely right. But this is a problem and the sooner we fix this ( is it possible? ) the better it will be for India ( or any other country for that matter with a similiar population ) .

There are a few things that I think requires serious change in India :

1. We need to develop a culture that supports, encourages and rewards innovation - which means we need to develop a startup culture that is akin to US. We should make it damn easy for people to start companies in India (Hopefully you are listening Mr.Modi and Mr. Manmohan Singh ). So far all I have heard is that its hard. With a labor force like ours we can surely go far ahead.

2. The second part ( and the part that is addressed by this blog post ) is training or bringing this large labor force to a level that is usable by the companies that are thus created. This is a much harder problem but perhaps there is a way this too can be disrupted and changed. Changing the mentality of people towards something is not really that easy. But considering how people flock towards all those Indian Idol, Saregama etc.. maybe something similar ( I dont know what that is ) might help.