Nasscom has identified 4-5 different areas and is taking these recommendations to the government. Many states have actually funded and partnered with bodies like Nasscom to set up incubation centres and provide infrastructure support, which lowers the cost of entry, he added.

"There is also the need to ease the flow of capital into this ecosystem because the normal banking and financial set up don't work. This industry is not an asset based industry, it is basically based on the value of an idea and on value of technology," Chandrashekhar added. He said these issues are not recognized by the domestic financing system, which is more focused on assets and collaterals.

Another element is to leverage the domestic market to encourage the growth of such firms as a lot of them also look at the domestic market. The innovation and products and services are also based on domestic market needs, he added.

Chandrashekhar further said: "Spreading this ecosystem to different parts of the country is important because there many places which can support this ecosystem, so we need to grow it beyond just Bangalore and Delhi NCR and places like that," he said.

While Nasscom launched the 10,000 startups initiative, the organization believes that there is potential to do much more, especially when there is a comparison with other much smaller countries like Israel, he added.

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