India has some of the most astounding locales in the world. The biggest pain is the lack of infrastructure. Some of the roads I have seen while traveling in the North are just scary. Besides this, the hotels are either super-expensive 5 stars or run-of-the-mill rubbish. A majority of potential travelers don't want to stay in $500 / nite place. Taj's chain like Ginger is trying to change that - but we still have a longish way to go.
Its due to the high coast of land. As i was watching a interview of Sant Singh Chatwal the famous hotler of New York and family friend of Bill & Hilary Clinton (And owner of the Bombay Palace chain of restaurants and Hampshire Hotels & Resorts) on CNBC.
He was saying that land is very costly in India that's the single biggest reason for high tariffs in India, in fact hotel tariff in India are higher then that of USA.
As for infrastructure better Airports, roads, public transport, hotels- restaurants, maintenance of monuments are getting better day by day.
But my biggest concern are law & order, touts, guides, beggars,taxi/auto drivers and stray animals. These are the biggest turn off and irritants. And if we don't do anything for these things everything falls flat.
Also, these things don't requires money just only will from the govt is required.
Take example of beggars, even govt arrest them high court objects that these are not criminals but if govt. tries to rehabilitate them by providing them work with wages + food + shelter beggars run away.
Because they have used to easy life and easy money, while begging they easily earns from rupees 300 to 1500 depending upon the location.