The Indian President seems serious:

He said that he visualized India launching a manned space mission with two astronauts into low earth orbit and recovered after planned orbits in the Bay of Bengal in 2014.

“It is a beautiful site to see the two Indian astronauts coming jubilantly towards the shore; Coming majestically towards the cheering gathering and being greeted by the enthusiastic scientific community presided by Chairman, ISRO. Of course, among the welcoming crowd is a 83 year man who is none other than myself”, he said.

Of course, the notion that this is a "race" remains ludicrous.

Dunno how "serious" this was. It sounds like he was spinning a vision, but not proposing an actual program. Is there any indication that they're increasing the Indian space budget to accomplish this?

The mission was proposed by the ISRO and the President was simply giving his endorsement. If their government approves the $2.2 billion budget proposal, then I suspect work will begin to meet the 2014 launch. (Source)

Rand, to kill off "Space Race" you have to come up with another rhyming headline. 'Space Ace'? 'Space Lace'? 'Space Grace'? 'Space Face'? 'Space Chase'? That last one seems apt. Although when one team starts out with a 50 year head start, even chase is weak.

Its been my impression (and I thought it obvious) that the they (India) isn't in the Space "Race" with us (USA), but that its them and China on a Redux of the 60's. It's a forgone conclusion (to them) that we have our hands full and for all intents and practical purposes, are out of the race, any race.