In my opinion, India are at a bit of a dead end. Playing in the sub continent is easy enough when the pitch offers nothing and the bowlers generally just try and be economical until the pitch offers turn and then the spinners come in. But as soon as they go elsewhere where the pitches move and the ball swings, then they struggle most of the time.
You have Sehwag at the top of the order who is fantastic at opening in India, but as soon as the ball moves he seems to struggle due to his lack of foot movement. When Sachin and Dravid go, there is going to be a massive whole it seems at the moment. Gambhir is a cracking batsman though and will do well for years to come.
But how do India improve? The best thing to do is to let the pitches have a much greener tinge to them and get a lot more movement in the wicket. But if they do that in an International series then they might get rolled over and there is no way they want to lose, so instead they keep the tracks flatter than a pancake.
The best thing for them to do would be to get the pitches moving in the domestic scene so people can get a go at the moving track and ball, because while India may be force at the moment in the SC, when Sachin & Dravid go and they get to the moving pitches, things could be a lot different.