Our country needs a top to bottom shakeup in its scientific establishment if it were to be competitive in today's global economics. Research is the only way forward and talented individuals need to be given as many incentives as possible to stay back for research work (rather than leave for the West).
The start-up packages that newly appointed professors in government controlled institutes (like IISc and IIT) to set up their labs is a measly Rs.100,000. You cannot buy jack-shit with that kind of money if you are serious about research. Research is expensive, but important and needs to be supplied with requisite resources.
With software companies and other MNCs providing salary packages to the tune of Rs. 500,000 a year, its completely unreasonable to expect a talented individual to do research for Rs. 250,000 a year (particularly when research needs a lot more dedication and hard work than writing software codes).
As a result, Indian scientific institutions are forced to hire spares - people who don't get jobs anywhere else. In the end, the scientific establishment ends up spending billions of rupees on worthless causes and individuals without accomplishing anything (look at LCA - excellent design and specifications, but still delayed by 2 decades).