Though you confessed that your friend had painted only a rosy picture of India, I'm afraid you have repeated the same mistake. This article looks solely at one side of India, not the progress it has made, or the image makeover, the technological developments or the pride in one's culture coming out via theatre/movies/art/fashion. India needs to be seen in all its totality. Presenting one side of the picture is criminal. It is true that "Half knowledge is dangerous knowledge".
I do agree with some of your frustrations regarding the red tapism and racism. But at the same time, I do believe a conscious effort is being made to fight these, to the extent of getting technology into the govt processes like filing IT returns online.
If I had to rewrite this article, and the one thing that I can not stand about India - It would be the people of India who point fingers but are not ready to take responsibility for the change. Its easy to sit in the sidelines, but its far more difficult trying to bring about a change.