I think the reason there are lesser product companies compared to services companies in India is two-fold, culture and lack of easy access to capital. To start

I think the reason there are lesser product companies compared to services companies in India is two-fold, culture and lack of easy access to capital. To start a product company, you have to forego cash up front for a bigger payout (either acquisition or organic growth in a lifestyle biz) later in the game. I think most Indian kids coming out of college don't lack ambition or entreprenurial spirit but it is hard to justify (especially to your parents!) giving up a steady paycheck for the risk of a startup, and that's where not having easy access to VC or angel capital becomes a problem. And then there's the issue of competing with the large software sweatshops on salaries... This: http://munjal.typepad.com/recognizing_deven/2007/04/episode_26_indi.html http://munjal.typepad.com/recognizing_deven/2007/04/episode_... and, this: http://twitter.com/amitranjan/status/742763842 http://twitter.com/amitranjan/status/742763842 make for interesting food for thought.