I think of at least a dozen reasons why tourists don't consider flying to India. The visa issue is not on them.

Compared to HKG, SIN, Sri Lanka, Seychelles or Maledives, India is quite a big country with complex issues (see the complex differentiation of business and tourist visas) and a history of risk (David Headley) that would stop it from switching to a HK/SG style 'come to us and we just put a visa sticker/stamp in your passport!' system.