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Well i live in India and while I can't comment on "starting a business" etc, I must say that over past few years i have found IT enabled services (both government and private) refreshingly easy to use and in some cases superior to what i have found in developed markets -especially Europe. Train tickets are very easy to book online and you actually need only the text message with the confirmation number and a proof of identity to travel. Online tax filing now comes with many fields pre populated and corporates can now only file online - no paperwork. Seeing any registered company's annual filings takes about 5 mins to process. The providend fund is now online and so is passport application. When I've travelled abroad especially in Europe, i sometimes find their systems charmingly antiquated.

The Indian railway ticketing system was recently improved and it looks like its vastly better now.

Yes, true. Here are the technical details: http://pivotal.io/big-data/case-study/distributed-in-memory-... - a worthy HN submission by itself

Yes. Thats one of the things India needs to improve upon desperately. Despite all these there is huge potential considering the 1 billion population and the fast adaptation of new technology.