During the Civil War, Abraham Lincoln was supposed to have said that he would like to have the Lord on his side, but he had to have Kentucky on his side. India may be as crucial in what may be a new division of the world's powers in our time.
I would suggest that we do no such thing. Our current policy of economic engagement seems to be doing the job a lot better than the screw-ups in the State department could possibly manage. I have a LOT of Indian friends, and the non-muslim ones are already about as pro-America as you can get. It is only a matter of time until these people become the dominant force in the Indian government, and once that happens the alliance will occur naturally. India has a lot of problems it has to solve (government corruption, etc), but the people there can solve them as long as we don't interfere. Engaging the current government will only make things worse, since any support for the current governmental structure is likely to delay desperately needed reforms.