Yeah, I've been to India quite recently - earlier this year actually. It struck me just how wealthy the country really is. I'd always thought of it as a pretty poor nation.
It's wealth is spread over an awful lot of people - so the average standard of living doesn't match the wests (although it was better than I expected) - but overall, the country is doing pretty well - and as bad as this disaster is, from what I can see it's really only affected a fairly small section of the country - the rest is very capable of providing aid to that area.
What impresses me isn't that India is capable of dealing with this. I'm quite impressed with the fact that their initial response has been to assist others as well as themselves - especially Sri Lanka, with whom relations haven't always been the best
It also helps that the states which were affected(barring the Andaman & Nicobar islands) have pretty strong economic & social infrastructure(Hospitals/responsive civic administrations/NGOs/volunteers) when compared to the rest of the country.That itself eases the strain considerably.
BTW,I have a bravo for you Aussies,your planes landed in Indonesia even before anyone talked of sending aid-that's how civilised folks behave(though you may not get anything in return)!!!!!!