I saw this question remain unanswered, and while I am no expert on India, I am a political scientist by training, so I wanted to at least give you some links.
http://www.voanews.com/english/archive/2006-05/200... this is an article about how while India provides some of the most advanced health care services available and attracts people from other countries, it does not seem to be able to find a way to deliver that health care to the poor in India.
Another good source of information:
Aggarwal AK. Strengthening health care system in India: Is privatization the only answer?. Indian J Community Med [serial online] 2008 [cited 2009 Aug 11];33:69-70. Available from: http://www.ijcm.org.in/text.asp?2008/33/2/69/40869
And finally this article from the Economist
Hope this helps.