I think the problem is also with the lack of US style Universities. Most of the good quality successes from the US come from Stanford, Harvard and the likes. It

I think the problem is also with the lack of US style Universities. Most of the good quality successes from the US come from Stanford, Harvard and the likes. It is this entrepreneurial and enlightened culture that YC taps into to get quality of startup it has along with the exits. YC is only the finishing school for such startups considering their strict selection norms. The problem is also proportional to how many new technologies are coming out of India. How many companies / hackers are hosting open source projects on Github, Google Code etc. I think the problem is not with the market. Its that the culture is not sufficiently mature. When you build products for India, you tap the whole developing world market - Asia (other than Japan / China), Africa and South America. English is a barrier but so is the lack of good solutions.