India could still make something of this, if they bowled NZ for a 100 odd.
On a side note, I think one of the reasons questions are not raised over India's generally woeful performances overseas is that people don't expect much - if they win its a bonus. As long as they remain champs at home.
I do think its a crap way to go about things though, if you really aim to be a proper number one, you have to win everywhere. India don't really have an excuse either, 1.2 billion people, where cricket is by far the most popular sport (for example in other countries cricket has to compete for talent with plenty of other sports eg football/soccer in England), and still can't create a world beating team despite all of those demographics being so much in favour and all the money involved. I could go on and on about this topic, so I'll leave it at that.
NZ are looking very good, the best I have seen in a long time. Could do very well in the upcoming T-20 world cup.