The Indian economy will collapse, just like all capitalist economies. The fact is, capitalism is in a crisis, a crisis brought on by its own internal contradictions, which will be simply be alleviated by a reform there or regulation there. As long as India continues down the path of capitalism, India is doomed.
The Indian economy is in need of repair as the largest countries in the world. However, the Indians are knowledgeable about the causes of the economic turmoil. The gambling situation is getting the Indian economy balanced and on track to recovery as the other countries especially the western world economy.
To say that India will collapse is absurd. India's GDP per capita is only around $1,500 USD. That's low especially considering that India has some of the hardest workers and are getting more and more college graduates. India also has 1 other thing going for it.... It's population. India has one of the most youthful populations in the world, they work for cheap, and they are relatively skilled. India is following a Capitalist model which is a proven method for growth, just ask America/South Korea/Japan/The EU/Brazil/Etc etc.
India has everything it needs to grow it's economy and it can't really fall any lower.