Thanks to Indian constitution and other laws, incompetence is heavily praised and promoted. Go to any public high/elementary schools, go to any private colleges, it is rampant. It has taken three generations to produce these bad results. Of course, I am not saying that students are dumb. It is just that many smart kids in villages if given an opportunity, will leave India in a heart beat because they don't see a bright future for their future kids.
Indian bureaucracy thinks extremely short term. The state prioritizes extracting revenue over all else. So many baffling short-term decisions over everything from corporate tax breaks to a incentives for global events like Formula 1.l
You really can’t expect the same bureaucratic setup to think in terms of the decade+ it would take to be competent at something like chips
Indian bureaucracy exists to enrich themselves for their next ten generations. The bureaucracy itself promotes, recruits incompetents. There is no way to reform such a bureaucracy.
The whole system needs to be dismantled while an alternative system gets built; given the nature of Indian politics (freebies/jobs/reservations to certain groups; monthly stipends to certain groups by borrowing money while at the same time looting public funds), it is impossible.