Indians were already in positions of power
Argueably this is the problem.
If you want to have a meritocratic system ensure it is complete.
Raising an educated class of civil servants but maintaing a very clear ceiling above which they could not advance was bound to cause problems. The resentment of such a system, coupled with the obvious desire of the metrapole to not reform the system leads to a wish for independence. Once the wish is consolidated it doesn't easilly die.
The problem is, while the British might have been willing to accept such in the 1940's, they really need to be accepting it a century earlier. If you manage that the Empire may well never break up. Bureaucrats like big departments. Running an independent (and sundered) India isn't going to be half as satisfying as running a cresent which spans from Kuwait to Singapore. India has the manpower to control such a bloc effectively indefinately.
But late 19th century racism, social darwinism and nationalism makes any reform doubtful. You need a rather different intellectual climate.
You have the old federal Empire idea, but in my oppinion its never going to last. The Dominions are becoming nations. If the rest of the Empire is gone, they are disparate nations scattered the length and breadth of the world. Britain, Canada, South Africa, Australia and New Zealand? It would be hard to find 4-5 nations further away from each other. Any union beyond the nominal solidarity of the commonwealth of OTL is unlikely.