The problems described (mainly, VC's to support exiting companies from incubators and large customer base willing to spend money on new stuff) here are true to varying degrees for all countries other than the US, I think, i.e. it's not unique to India. The produce a chicken and egg problem, since in the US many startup are fed by rich, knowledgeable people from earlier successful start ups.
One way out is for the rich expatriates in the US to invest back in their countries, which is happening for India and China.
One way out is for the rich expatriates in the US to invest back in their countries, which is happening for India and China.