It'll be a while before India will be able to manufacture chips of any sophistication, but I also find the constant belittling of its efforts foolish. There was a time when the West thought the same of the rest of the world ("only the white man is truly intelligent"); and there was a time when the Japanese and the Koreans thought the same of China ("Chinese can never compete with superior Northeast Asians"). In the end, they were all proven wrong.
India certainly brags more than it delivers, but given enough time and money, I'm sure it can do be successful, as well. Maybe it's because I'm older, but for most of the last 20 years, China was subject to this exact same kind of ridicule from mainstream media and public forums, with equally "compelling" evidence questioning everything from Chinese politics, to Chinese culture, to Chinese genetics, to the food Chinese people eat. Yet look at where we are today.