If you're an Indian businessperson, you have two options - copy the US and make a good ROI, or risk everything on creating a new product for a potentially better ROI. The choice is obvious - it's far cheaper (and more beneficial) to play catch-up than innovate.
The question is - why is India still playing catch-up?
I don't know that much about India. I'm guessing that corruption is one part. I've heard Indian culture can be anti-business. Perhaps politics are more sectarian than policy-based - they don't vote for a party because it has good policies (or seems to have good policies), but because they identify with the candidates (same religion, caste, region, family, whatever). Democracy doesn't seem to work when elections are fought on sectarian lines.