Is it that difficult to figure out really? Lets see…here are some reasons in no particular order

1) Horrendous traffic in cities
2) Unbeathable air in cities due to #1
2) Filthy cities with trash thrown on the streets
3) Touts and beggars harassing foreigners….people out to cheat you and rip you off everywhere you turn
4) People defecating in the streets.
5) No 911 or good emergency services
6) Water shortages. Electricity blackouts. Pollution issues
7) People throwing plastic bags, wrappers and bottles even in religious or historical places. (First teach the average desi some basic civic sense then worry about tourism.)
8) Overcrowding at tourist spots or national parks
9) Formerly good mountain retreats or forests now becoming too “touristy” due to uncontrolled development.
10) National parks becoming not good to visit due to poaching, maoist insurgencies, or deforestation by overpopulating villagers for firewood.

I could go on and on but you get the point I think. Its no surprise then that China’s annual tourist visitor number is 10 times more than India’s (54 million vs 5 million) I bet you 4 of the 5 million is expat Indians visiting from abroad. I dont think the problem is due to not promoting yourself adequately….its just that you dont have a great package to promote.