Olympics is one good example to prove that India is equally bad at every thing. Indian govt is so corrupt & incompetent that they cannot find even single person for each of the simpler disciplines like running, swimming or long jump.
Considering I was a sportsman myself, I can tell you that there's no market for sports.
First off, we are not encouraged to take up sports when our age is in the single digits or even early teens, 'cause that's the responsibility of the parents, not the govt. In case you are lucky enough to get in, you don't have the facilities to train in or the experienced coaches to train you. Or you can get all that for a significantly large price, unaffordable to most. But if you don't get into sports very early, then there's no point in looking at a sports career in the first place. And no parent would deem sports a career choice when the market doesn't exist. The question you should ask yourself is when was the last time you watched any Olympic-qualified sports on TV with only Indian athletes in it, particularly any single player event? If people do not watch, it's not broadcasted, and that means there's no market. So there's no potential to earn money for the athletes, hence it's not a viable career option. And I'm not even getting into the politics involved during selections.
Most sportsmen in India have full time jobs, and they practice in their spare time. So, no family support, no public support, no money, no facilities, no trainers, no time, dunno why people are expecting sportsmen to create miracles when competing with other sportsmen who have all the above.
This is not a failure of the govt, we are not the Chinese govt, it's a failure of the people. Any interest in sports is largely limited to cricket.
But we do extremely well in sports where minimum physical activity and financial investment are needed, like snooker, billiards, chess etc.
As the public becomes richer and more sophisticated over many years, interest in entertainment will increase, so will interest in sports, that's when we will start investing in it.