But unlike in the west, it is very hard for talented Indians to make it big in India, thats one of the reasons why many chose to go to the west to work on their ideas. But what if the Indian government were to provide loans or grants to creative people so they start and grow their businesses in India, wouldn't that accelerate the economy much faster than waiting for outsourcing jobs?

One of India's big successes InfoSys didn't get any help from the government but think how many such companies could be started if the people with potential knew there was money available. And it doesn't have to be government loans and grants alone, successful individuals can participate by setting up venture capital firms.

There is no reason why India can't have a Silicon Valley, we just need the government and other people with the money to smell the coffee, hopefully they do so sooner rather than later.