This is the elephant in the room when it comes to India. There is just a huge amount of apathy amongst the people. A simple example is how much produce rots to waste as a result of poor transportation/refrigeration. There are so many processes crying out to be optimized.
As a US-born NRI, there are so many things that I find appalling that my family in India doesn't even notice. It's like they've been desensitized to all of these issues over the years to the point where they're not even really considered problems.
A lot of people believe the difference between India and China is that China's autocratic government allows them to modernize and improve their country much faster, but the truth is that democracy can be compatible with rapid modernization if the people are willing to work together. Even in China, the government is ruled by a large number of people - no one would say that Hu Jintao has a level of power even close to that of a dictator. The real difference is that the Chinese government has labored long and hard to improve living conditions for hundreds of millions of its citizens (though it has also brutally mistreated several million of them) while the Indian government has been sitting around twiddling its fingers.