I agree that the Indian education system is oriented more towards rote learning than towards developing innovations. However, it is not a problem of "human talent". There are countless examples of Indians educated till Undergrad/Postgrad level in India who migrated abroad and were very successful in developing innovations there. The failure is at the institutional level. The system is very good in picking talent. There is a lot of supply and very fine filters that can pick out talent equal to anywhere else in the world if not better. But the system is not equipped to use that talent. The talent doesn't get the generous funding, the high-tech labs and the license to go all-out that it'd get abroad. Frustrated by the lethargy of the system, the talent moves out to a place where it is used appropriately.
Spot on Kapil..