I agree, baggage from the past and inability to change foreign policy is perhaps what ails Indo English ties.
US for example in last 15 years or so (& specifically after 123 agreement) has allowed India to lay hands on some of the most cutting edge technology and in the process become one of the biggest supplier to Indian armed forces. Had they been living in Nixon era hatred towards India, they would've allowed traditional suppliers like Russia, France and Israel to dominate, but their foreign policy is flexible.
That fact that we are a very stable democracy and one of the fastest growing economy should be the actual ground for laying down diplomatic relationship basis and not 60-70 year old pages from history.