I agree with Rajeev Srinivasan that Indians are quite capable of elevating themselves using their ingenuity. When they need help from the government, it is to enable them to get started in any particular field of activity. From then onwards, the government has to show enough faith in their ingenuity and make the path simpler and more reliable for them.
Rajeevs IT example may after all be the indicator of things to come. Technology is going to be most likely the motivator for many of the quiet revolutions of the future, not just in the area of gentrification of the society. The growing popularity of computers and the Internet is going to revolutionize the delivery of public services. I would refer the readers to the New York Times front page story Plan to Connect Rural India to the Internet, by John Markoff, Revoluions are quiet and effective when people feel they are contributing partners.