I refuse to believe that we are "a nation of kaamchors". I have studied in government institutions in India (IIT) and been to France many times and collaborated extensively with French mathematicians. I can tell you that organizationally from the entrance exam, to teaching classes, placing students etc. the IIT's are at par (or perhaps better) than the best French institutions (Ecole Normale Superior for instance). Of course, their resources are meagre compared to French universities. To a lesser extent the same is true of the postal service, railways etc.
It is very easy to cry out for privatization -- without considering its costs to society. The current trend towards privatization of education is a death knell for the Indian education system. Very soon only rich spoilt kids from urban families would have access to higher education -- and these kids are no good. I know -- I have taught many of these kids.