Aside from the obvious fact that nations can spend money on multiple objectives at the same time, the real un-intelligence comes from suggesting that the people of the country actively involved in various civil programs are somehow incapable of taking care of their problems. Are you insinuating that they are perhaps inferior and need rescuing? Because India has seen how that goes very personally before.
Yes, the industry does not care about Rubik's cube and Go. The industry, however, would not exist in the first place if not preceded by researchers on equivalent endevours that would make zero monetary sense on first look. Markets are created by those that can envision one with the given technology. No matter how incredulous the technology might look like.
That's some baseless assertions if ever there were any. Gimp, Inkscape, VLC, Blender. All open source, all used by enthusiasts and professionals all over the world. Maybe not in the same quantity as that of their open source counterparts, but used by enough people to be counted nonetheless. When it comes to VLC, I dare say, it might even beat its commercial counterparts.