I don't always get into discussions involving Indian cricket too much, but for once, here we go:
It is obvious that the balance needed for a number 1 team looks absent in the Indian team, and some selection blunders compounded that for this test. But there have been signs of these from long.
BowlingIndian bowling options, especially in tests, are a joke. Whether you like it or not, they don't have the ability to pick 20 wickets consistantly, and we have the audacity of claiming that the opposition isn't qualified enough to pick 20 wickets (Sehwag's comment against Bangla, a case in point). Quality spin blowling has almost become extinct. Anil Kumble had the ability to dictate terms from day 1 of a test in India, irrespective of the kind of wicket. All the home success and the fortress of the last frontier, to a large extent, must be attributed to Kumble's success.
Harbhajan Singh hasn't won a series for India in ages, Zaheer Khan is hot and cold, Ishant Sharma is still piggybacking on his successes against Ricky Ponting. Other spin options (Ojha, Mishra, Chawla) are nowhere in picture, as far as international class is concerned. Backup fast bowlers: Munaf Patel, Irfan Pathan, RP Singh, Praveen Kumar, Ashish Nehra look like spent force and the less said about Sreesanth, the better. But, someone like Vinay Kumar, who has been the second highest wicket taker in domestic circuit for 3 seasons running, doesn't even get a look in. Another new face, Abhimanyu Mithun, touted as one with raw pace, gets dropped without even getting a chance at the highest level.
BattingBatting is still in safe hands, I would say, and Gambhir is a hardworking cricketer who would prove himself stand India in good stead in years to come. Sehwag is Sehwag, unquestionable

. On retirement of Dravid, Tendulkar, Laxman, there may not be equally glorious replacements, but there are young guns oozing a lot of promise for a few seasons now, the likes of:
Subramaniam Badrinath, Cheteshwar Pujara, Ajinkya Rahane, Virat Kohli, Murali Vijay, Manish Pandey, Mohammed Kaif, Parthiv Patel are some of these faces who would fight it out among themselves for clinching these positions. As long as the hype of unproven players for longer version, like Yuvraj Singh, Suresh Raina, Rohit Sharma don't influence the selections, we should be looking at a bright future with the bat. But that is a big question mark in itself.
But the biggest worry, as Laxman recently said, is the lack of world class spin bowling options.