Why Is the West providing technology to India?
I may hazard a small guess to this. India has a very young workforce in comparison to its Asian counterparts (China and Japan). We especially see this in the field of software design where it has an even lower median age of labour than USA. As we know the West gains a lot from brain drain and stands to gain even more from young innovative minds that India produces, we can assume this access to new technology will let India produce even more bright minds.

As for India becoming a large vendor. We can see China will be facing extreme labour shortages soon due to it's high aged labour force and extreme brain drain. This in turn has China to be predicted to fall as a large vendor in the global market (Or at least possible). If it does India can take its place, easing the instability of the market, and if it doesn't we have a new youth force with amazing work ethic gain from.

Also from an Economic view more vendors in the market is decentralizing, which can be seen as good or bad depending.

Hope this had something to gain.