It doesn't mean that INDIA is bad at sport. The main thing is that INDIA is not much powerful than other countries. They must work hard more & more for the next olympics. :)
MAIN REASON: CORRUPTION
in india there is lot of corruption which does not let anything rise despite india being a free democratic country. there is so much corruption e.g. delhi commonwealth games 2010 were full of corruption but despite that india topped 2nd in rankings, you see its basically the government which does not care at all, the athletes who do win any sort of medal only they know how much they had to go through to get that because the government only appreciates and starts caring for that one medalist after he/she has won , same goes with the media, they are all over them but before olympics no one gives a damn everyone just hopes india gets medals but india cannot because there is no infrastructure or support for sports, atheletes wanna do their best and do their best with whatever they have, some big shots in indian team are good and some are really bad that they dont give a damn e.g. sania mirza. Despite building world class facilities in delhi games they are now just rotting and government dont even seem to know that instead of letting the facilities rot away for years, they should let athletes use it. India has population of over a BILLION but hardly manages to win 1 medal as you mention compared with china who wins a lot more despite having similar population but then over there its totally crazy the way athletes are treated (no freedom of speech does not help either as china is communist). overall indian parents give more or almost 99.9% priority towards Education then family life then sports. with education a indian can get a secured future but as with sports as its not promoted by government at all, thats how india will be for years to come unless government starts spending money on infrastructure.
Simply because we are not interested in olympics.
Less facilities. Low dedication. Low morale and bias behaviour of umpires.
They are good losers, that's why. They accept it, unlike some who go raise Cain, like as if they were entitled to all wins.
They've won maybe 1 medal at the Olympics.