The Indian VC industry has seen massive growth, but is still dependent on American and Israeli FDI. Compared to the UAE or Singapore, Delaware is easier to manage from the risk perspective and a regulatory perspective as an American investor.
Also, Dubai is a new entry in the Indian tech business incorporation segment. Traditionally, Tech Founders used the Singapore backdoor and Tech Investors the Mauritius backdoor.
India and the UAE only signed a FTA 3-4 years ago, and Dubai's business law is still being honed compared to SG.
IANAL but If I were an Indian founder today, I'd incorporate and build an Indian subsidiary under CECA in Singapore, live and operate it from Dubai, and have operations run from within India.
Edit: thinking further, if I was starting a Tech B2B or B2C, I wouldn't even consider UAE to live in. If I created a Singaporean corporation, I'd have the ability to live in Singapore itself, and I would be able to expand my business into ASEAN where Indian startups and VCs have found similar operating conditions to India, while the UAE doesn't really open myself up to any markets outside of Africa, MENA, Central Asia, and South Asia. Great if I was a trader or import-export (ever ate rice in Gujarat? A portion of it came from Sindh via UAE. Pakistani Hindus run the rice import-export business in Sindh), but not if I was a tech startup.