Jana we have a free media. Our production houses make whatever they feel like be it reality TV or soap operas. Only control we have over them is through the Information and Broadcasting Ministry which keeps their content under check but even they refrain from going overboard with it or else, being a democracy, there will be a lot of hue and cry over 'how the govt. is trying to curtail the freedom of speech'.
Apart from that, we have really no control over them. It's for the people to decide what to watch and what to not watch.
As far as image of India is concerned, I think I can safely bet on the wisdom of the general public to not judge a country and its people by its TV serials. If some Indian TV serials are crap that doesn't mean India or Indian public is crap.
Indian TV serials are doing just what they are meant to do i.e. make money. They should not be taken for anything other than that.