Being an Indian I can tell you the reason behind this. our education system unfortunately fails to promote innovation. even then there are a few startups like zoho and slideshare which are doing well.

Another thing which goes against Indian is their shyness. In west people get ideas patented left right center. On the contrary Indian people never go that far. Some of the people never get started because of fear of becoming a laughing stock on failure. Again root of this thinking lies in our 200 years old education. Startups are all about uncertainty ; our education system always teaches us to take the safest option.