1. This is absolute bunk. I don't know whether the statement of Macaulay's is genuine, but i don't agree with the statement at all.
2. The statement says: there are no beggars or thieves in India, people have high moral standards.
a) There have always been beggars in India, this is well documented.
b) India is famous for thieves. You have a whole tribe whose trade was thievery. You must have heard of the term "Thugs", these were professional thieves. All the members of this group were thieves.
c) High moral standards: a nation where a whole group of people, Dalits, are treated so badly, and not even given basic human rights, how can such a nation have High moral standards?
3. A simple point is that if the internal workings of this nation were right or strong i.e., if we had our house in order, nobody from outside could have dominated us.
4. spiritual and cultural heritage: do you all know that the language of scholars was different from that of the common man?
And what spirituality? You discriminate against a whole group of people, if spirituality couldn't cure you of this, then it is obviously flawed.
Cultural heritage: all the wealth was deposited in temples. It was not used for the betterment of people. This is a major flaw of Indian culture, and unfortunately this stupid practice continues today.
5. replace culture, whatever is foreign and english should be considered good: this doesn't hold for long. People can see through this. eg. we know that the western culture is not perfect.