While Israel Soars..

Register: Intel rumored to plunk $10bn down for Israeli fab expansion

Indian govt would die to get this kind of FDI, but here is where Israel scores over India:

Few statements have been parroted with as much certainty by the colonized elite than the idea that India's software success primarily results from its large English-speaking workforce. If it were true, then Kenya, with an English-based colonial class system and a large English work force, must also be disproportionately successful in software. This turns out to not be the case. Furthermore, this theory also fails to explain why Israel, which follows largely Hebrew and Arabic-medium schooling, is also a notable software success.
People in Israel migrated from all parts of the world in the twentieth century. These people spoke many different languages, yet Israel chose Hebrew, not English as the official language, reviving for modern times what had been declare a “dead” or classical language. This would be the equivalent of India choosing Sanskrit as its official and link language, instead of the colonial choice of English. While it can be argued that a choice of Sanskrit would have instilled a far greater sense of pride, rootedness and nationhood in India society, even contemplating such a choice was beyond the ken of the colonial elite, so well trained by the British, that ruled India at her independence.

To understand the success of Israel over Kenya in software, the explanation, indeed, must be found elsewhere, other than in language. I remember reading in one of the physicist Richard Feynman's early books how a respect for learning was a deep part of Jewish culture. In a similar way, in India traditionally learning has been considered the highest good. All of our scriptures extol learning, and parents have traditionally placed a great emphasis on learning.
While the learning of English as a language can still be considered a positive factor in the development of India's software industry, English as a primary medium of education and the resultant English-based class system can only be considered an impediment to this success.

Source: The English Class System by Sankrant Sanu