As an Indian who has lived in North India for the entire 23 years of his existence, I can say that every single word that the author has reported is true, except one. It is not safe to roam about in wee hours not even for men. Except may be in Mumbai and a few more cities. I would advice any other visits against it.
Oh and people who have praised the word 'jugaad', in most cases it is a illegal-immoral solution. I hate it when people glorify the act. It is a reality and it is present everywhere in India - but I hope that we grow out of it.
You can divide the country into three parts: (A) The Powerful (who are always rich) (B) The not-so-rich and not-so-powerful (C) The poor and powerless. People of class (A) are leaders, businessmen and politicians who are also lawmakers. Class (B) is the middle to high income families who think political dialogue is a stinking business to be a part of. Class (C) is the overwhelming majority who vote and get paid for it - either directly or through improper political practices from caste/region/religion based arguments.
We have a huge population with few resources. We don't have enough fuel to dump our waste, not even enough ground to dump them on. We have very high unemployment and low literacy. Even the education system that we have is largely of very low quality. Cross Border Terrorism that is so not a daily part of western life is now too boring to be covered on Indian television. North India is so accustomed to it that people have even stopped demanding action - we don't think our government can take any. We also face Naxalism [1], a reality that a lot of us don't understand as it is largely based in Southern/Eastern India.
We regularly see large scale corruption ($1B+), as frequently as once every year. The culprits come back to power in a few years (An example: [2]). And people vote for them, because there is no better choice. This is unlike say USA when similar things would have been ends of political career for people involved.
BUT, please stop commenting on India as a comparison to the US and the rest of the western world. We get it, you have cleaner cities, healthier people, lesser discrimination and no unhappiness. We know it well, we live by it every day. These commentaries just seem unnecessary. We are innately handicapped in the race of development. We have started off late [3]. We have started off behind [4]. It is also very arrogant to impose your morality to the ancestors of others [5] as even if they may agree to what you say, they cannot comment on the situation in the previous era as they are unaware of the context themselves. It is very rude to use it as an argument against the present.
And let's make it clear. India is no more spiritual than any other country on earth. We just have a lot more temples and monasteries than most places. And they are also old and diverse. These exact things that attracts most westerners to India - the ancientness and the abundance, are also very closely related to what westerners hate about India. You cannot have orthodox, untainted and non-commercialized establishments without the perils of unorganized, corrupt and ill-managed institutes. Remove both, and you have a country that is working just as vigorously towards modern (and very western) ideologies and standards of living.
[1] http://en.wikipedia.org/wiki/Naxalite
[2] http://en.wikipedia.org/wiki/Fodder_Scam
[3] http://en.wikipedia.org/wiki/Indian_Independence
[4] http://en.wikipedia.org/wiki/British_Raj#Economic_impact
[5] http://news.ycombinator.com/item?id=4214998 [Sec: Sati]