I suggest we should stop whining and do something. Inplace of accusing M$ of being hatching a conspiracy with GoI departments (this will anyway continue, even if we complain). Sometimes it is and can be partnership.
Why, the reasons should be obvious, 1) for a GoI officer/ babu, it looks cool if their name is associated with M$ (which no doubt is a big name), and is also a status symbol for them. 2) They can always claim that M$ will do this and that and will provide them with some immediate short term benefits that is tangible in terms of money. 3) They can relate to M$, from the one and only OS known/ taught to them into which they can _click_into_. 4) Don't forget the banquets/ dinners/ free passes to conferences. 5) And sometimes actual genuine help too, though usually inspired from future benefits M$ will/ can have. ... .. and many more...
Free Software still has to go a long way in terms of acceptance, and our best bet is and should be the coming next generation, if they can be introduced to the concept of FLOSS and made to realise the benefits of FLOSS, especially the younger technocrats, who are shaping the future of Indian Computing Industry.
And if possible, provide solutions to the GoI people.
BTW don't expect too much from babus.
PS: If any one of you is familiar with DICE (A Windows based software developed by NIC for use in sarv sikhya abhiyan), I am working on a free, web based and generic version of it, still in preliminary stages, anyone interested?