What we need in India to get more start-ups created and more importantly, create the environment for them to succeed is a combination of an Incubator and Venture Capital Fund. This is something on the lines of what Kai-Fu Lee is doing in China or perhaps Y Combinator.
There needs to be a core team at the Incubator that can explore new ideas, and see their potential in them becoming companies. In India, one thing I have seen is that start-ups require a lot more hand holding. That is where an experience team at the Incubator can help nurture companies (teams) through the difficult early days. Venture capital funds typically don’t have the bandwidth to spend more time at many early stage companies.