Evolving Thoughts has a revealing graph of medals won by countries normalized by population. Gold medals per million and overall medals per million. Only countries who won at least one gold are considered.
Guess which country comes last
Source: Evolving Thoughts
But I find this comment more encouraging. What if we plot a graph of medals to expenditure. A sort of measure of return on investment. I suspect India will come off much more honorably. If we consider only government expenditure we might even come out on top, since many of our athletes spent their own money for training. And by government expenditure I mean the money actually spent on athletes, not the total budget, since much of it is likely squandered on bogus conferences, "study tours" and other expenses for the parasitic sports officialdom. Anyone with the numbers?