I am happy to see that this project has been funded.
Shyamal, your criticism is all valid, but I feel that it misses an important point. That point is that the Wikimedia community owes India 1/6 of all community funds (India is 1/6 of world population) and very little of the money owed actually goes to India. As someone in the United States I feel continually concerned about why Wikimedia contributors in India argue about portions of the money available without making plans to take all of what is owed.
Whatever happens in the future with Wikimedia community grants in India in the future, I hope that more people look to apply for more funds. I think this one was funded because the money was available for India and this was the best available proposal. Some people may feel that this is not the best project - those people should write better grants and propose better projects.
I would like to see more regional user groups in India be founded. It only takes 3 people, and user groups will be treated by the Wikimedia community as equal to the Wikimedia India chapter. If anyone feels that the chapter does not represent them, then they can start a user group or even a second Wikimedia India chapter.
Whatever happens - please more grant requests from India! I think this project is good, but also I recognize that few proposals come from India.
Request more, make more plans, make plans over time, and please more people start thinking about what you will do with your 1/6 allotment when Wikimedia community organizers are mature enough as a collective to manage it. In business India has some of the best management infrastructure in the world. In the NGO sector... I regret that very often development is difficult and argumentative in India. I wish for more collaboration in India because money is there to support.