I'll admit that I only have a passing familiarity with consultancies and other companies in India, but I don't think I'm defining innovation too narrowly.
A striking example is the IITs. These universities are lauded as some of the best in the world, but where is the ground-breaking research? Maybe I'm looking in the wrong places, but I haven't seen anything amazing come out of these schools.
I don't think the IITs have ever been famous for their research programs. They are well known as a magnet for the smartest engineers in India. Those smart engineers then come to the best US universities and contribute to the reseach, start companies etc. The IITs are a very effective filter and not world class research institutions.
A striking example is the IITs. These universities are lauded as some of the best in the world, but where is the ground-breaking research? Maybe I'm looking in the wrong places, but I haven't seen anything amazing come out of these schools.