While many of the comments can be accurate based on the individual's context, the take-aways/conclusions (both in the article and for most of the comments) are mostly WRONG.
There is tremendous opportunity in India, and most of the issues mentioned actually make it easier to exploit that opportunity. The article and the comments should not cause any trepidation about coming to India, but re-double your resolve. It's like "shooting fish in a barrel" if you figure it out!
Sort of hard to explain to people who are not in the thick of this battle. And, talking is not how you figure this out. But, if you are a startup type* - tenacity of a bulldog, super hard-working, high integrity, passion driven - I would be happy to offer you work opportunities that will enable you to figure out the formula of how to take advantage of all of this. Note: 1) only way to figure it out is to jump into the war (say 6 months) 2) for these 6 months you'll have to work on my projects 3) it will be all about execution, not talk. so it's imperative that you're a get shit done type. 4) in these 6 months, whenever you run into "india issues" being discussed in this thread, I will work with you (show you) how to overcome them with relative ease.
*most Indians educated in ivy-league-type schools and then having worked for blue chip corps like msft, P&G, etc are NOT start-up types imho
If interested, email me udai00(at)gmail.com