A great deal of the problem with the modern rocket industry is that it has been commercialized.

Indian and Chinese public sector agencies don't need to run around sucking off donors for money or inventing new ways to generate profit on taxpayer expense. They can operate at-cost with a consistent budget and aim at targets set by experts in the field rather than investors with the biggest wallets. Consequently, they're putting up better and more efficient spacecraft - India put its Mangalyaan probe into orbit around Mars for a measly $75M, China's the only country left with a nationally independent space station - than anyone in the private sector has managed to date.

Back when NASA wasn't an entirely owned and operates subsidiary of Boeing, it was able to go toe-to-toe with the USSR. But now the pursuit of quarterly profits is dissolving the western space industry to the point where we can't even get people off the ISS without Russia's help.