In an old essay Paul grahm has written three basic requirements for a successful startup.
1-to start with good people
2- to make something customers actually want
3- to spend as little money as possible.
Lets analyse these three points in Indian context.
Very first point is a problem in India. Who is good people ? If you want a real good software engineer then you have only one option in India is to hire peoplw from IIT's. But seeing salary centric work culture it will be a huge pressure on small pocket of a startup. So what is the alternative ? this the point where most the startup fail in India. They go for intermediate level of programmers ( 1-2 year exp) came out from horrable knowledge mines ( read new breed of engineering collages).
Solution - Go for freshers and harnesh their infinte capacity to work on your dream project.
The second point is well known fact whether you are starting a comapny or your PHD. You need to know which existing problem you are going to solve and how it will effect the masses ( read interest of customers).
Solution - Define your problem first before starting to find a solution.
Third point is the most important for a startup. A startup always has a small money to start their idea ( they have only one thing big is ideas). So they have to spend minimum ( read wisely). It is very important for startup to be always a extra care full about where they spend money means a single penny spent is adding a value to company or not.
Few examples are a well decorated office is less important than a laptop for every employee to work in a flexible working hours, a yearly outing a must for a small team etc.
So inthe last as Paul Grahm has rightly said "Most startups that fail do it because they fail at one of these. A startup that does all three will probably succeed".