I think that is a fair assessment on India, right now. Though, I think China is going to unite India in a lot of ways, meaning the relationship between the national government, the States and union territories and Indians. Powerful neighbors often do that.

The United States and Europe we'll look at India as a great investment opportunity, which will bring in more foreign direct investment. India's confrontations on its border with China will more than likely increase and unite Indians more. Americans and Europeans will look at India as an important hedge against China's power, so that will increase the coordination and money exchange for National Security matters, which will make the national government more powerful in relation to the states.

China is changing a lot of things, so I definitely think your comment is spot on. Hell, look at Japan, they are warming up to the idea of having a standing offensive military. And they haven't thought about that seriously since the late 1940's (constitutional limitations).

China's power is making a lot of nations think differently about a lot of things and changing the way they do business not only internally but externally. So India in the next 30 years, may look radically different than today.