Most graduates in this country needs to be trained from scratch for any serious programming work, due to how horrible the education system is. So it's not worth for the startups.
At my Mumbai startup we get a ton of applicants who have communication skills on par with Koko the Gorilla.
My friend doing B2B SaaS startups in India is very negative on the market since buyers are so penny pinching - sounds like the way is to build there but sell elsewhere.
I think the Indian business mindset still hasn't adapted to Western-style capitalism (derisk your personal wealth, throw a lot of money, go big or go bust) and entrepreneurs spend very cautiously which ultimately leads to failed outcomes. You can even see this in the way that big public corporations behave.
Everyone wants something for nothing.
Startups tend to go for top talent because they're trying to grow very fast. It's ideal for small businesses though, but that kind of a market takes time to develop and needs a sizable upper middle class who can afford to bootstrap businesses independently.