Indian Philosophy lays a lot of emphasis on detachment and generally frowns upon materialism. The ascetic is held higher in regard than the businessman. The ability to supress your wants and to gradually kill them off is considered a great virtue. This is reflected in Indian (and to some extent other asian) culture.
The west on the other hand is unabashedly materialistic. It makes the pursuit of happiness as the life's ultimate goal and to make most use of our time on this earth. But there is a caveat, this attitude has only recently developed and more specifically it is originated from America and has been adopted widely in Europe. It is a result of education and the undermining of religion.
There are many in India who are concerned that the western influence would be bad for India. We would lose our culture and identity. And I think they are right that India's identity would be changed but it would not be lost. Modern India will fashion its own distinct identity taking into consideration the radical ideas of modernity coming from west.
Perhaps the old ideas were suited to that times. When the society was more or less equal and people's position in the society was decided at birth, there was no incentive for people who wanted something more to be a part of the society. They might have gone on their own tangent and developed the concept of renunciation and others followed developing on the theme. So if a modern Indian is materialistic, it is because there is reward now available in the society for people driven by materialism.
The concept of detachment and renunciation are part of our culture but I guess they are not everchanging and one needs to change with our milieu. Ofcourse it is called sanatana (everconstant) dharma but there is nothing permanent in this world.