Sramana Mitra writes about the opportunities in targeting the 300 million segment:
Today, however, the opportunity for fueling more growth via education still remains, at all levels – from K-12, as well as in college and graduate education.
In pursuing this, one should squarely keep in mind the NIIT model, and refrain from trying to sell technology to schools. [I recently had lengthy discussions with Atanu Dey who is researching this topic and harbors desires to do something entrepreneurial.] The Sylvan / Kumon learning center model, for one, would be very successful in India, and tutorial centers are very popular places, helping clear exams such as JEE.
Other obvious areas that the Indian middle class spends wallet share on are Bollywood, Cell Phones, and Consumer Staples. JobSearch and Matrimonial Classifieds are also popular categories, and are being thoroughly addressed by the internet investments of recent times.