This idea of attracting human resource through emotional posturing and nationalism will never work. Indian leaders simply do not understand that incentive is the elixir of progress, not emotional sentiments. This is why a majority of the nationalist fanboys reside elsewhere and not in India.
As many people have pointed out, infrastructure is the most obvious barrier stopping Indians who have experienced life in developed countries from coming back. However if one were to draw up a ranked list of the issues, infrastructure would actually come in third. The first two would be the rule of law and adequately functioning public institutions.
It is unrealistic for any potential repatriates to expect the streets to be miraculously clean overnight. Now of course nothing will happen without infrastructure and this is a messy process that takes a long time. However I bet Western educated Indians would show up in droves if they were assured that they can return to a country where their rights are protected and where the police force and courts work and where they don't constantly get extorted when living their daily lives or when conducting business. If these conditions are met they will be more than willing to put up with the shabbiness of large scale construction and pollution to exploit the massive potential of the country.
What Indian leaders also fail to understand is that unlike China, attracting big business corporations isn't the real solution rather it's enabling small business that can truly revolutionize India. And this is why the rule of law and functioning institutions are more critical, because it makes it possible for anyone to conduct a successful business.