The answer to your why's can be found in the political history of India starting from 1947 till 1991 (when the economic reforms started). I suggest you read a book called 'India unbound'( I forgot the name of the author, the last name is Das). India is changing fast. Though most of your negative observations are correct, there is no doubt that a system encouraging the private enterprise and marking the end of red tapes are winning ground. thanks.