Also, there is this Indian mentality where no one likes to take the responsibility of a failure but jump up and down to accept the praise.. Its just how Indians grow up!
Hence, least appetite for risk.
And see the same thing has happened to GSLV Mk-3 ... they were earlier flying one GSLV almost every year.
But the two crashes (both in a gap of just six months) ... although both were due to different reasons -(1) In the first all went well upto the fourth cryo stage, when the turbo pump failed to start in the indigenous cryo, (2) the connector between the first and second stage ripped due to heavier payload.
And so, ISRO is now having to be extra-cautious with GSLV flights ... while PSLV flies without a problem.
On the positive side, it brings discipline. One LCA crash would have been $ 40 million lost right away. And you won't even be certain or get as much data, as a ground testing would reveal in wind tunnels.
One GSLV crash means Rs 400 crore (about $80 million) loss ... and only now ISRO needs to be more careful with GSLV. A $160 million loss in a gap of six months is huge to kill free funding to any R&D project in India.
Anyway, the success of PSLV is which makes ISRO still in business; and the "political space" to continue getting some funds for GSLV.
Without the successful PSLV, very likely GSLV would have found really hard to find any new funds (especially in this economic situation).
Let's hope, whenever GSLV Mk-3 flies, it's as robust and reliable at the current PSLV.
Well.. well... now this has become a grossly off-topic post. sorry.