Unless we open up our borders and invite world class multinationals to India, we will never become world class ourselves. All major multinationals bring with them a much larger resource base and a tremendous track record of competing in so many different markets. The Indian economy, which is fairly protective and therefore complacent, has allowed a lot of inefficiency to creep into the system. What would happen then is that some companies would die in the process. I think it is not bad because it is like the forest fire.
Trees die in the fire, but some also get regenerated.
Ultimately, some really hungry, bright entrepreneurs will find their way to create corporations, which can be world class. Therefore, this is, may be a blessing in disguise for us. The information technology boom in India has demonstrated many things, and one thing is that you don't have to be the son of Tata or Birla to set up an industry and become rich. If you are well educated, have ideas and not scared of competition, you can set up an enterprise. Some of them like Infosys and Wipro are even challenging the well-established companies.