For years, it was talked about as India's "Brain Drain." Smart young students would take one of the most competitive entrance examinations in the world, get a bachelor's degree in engineering -- and promptly go West.

Three years ago, IIT Bombay set up an IT incubator. While it is too early to draw conclusions, there are initial indications that the incubator has been successful.

"We have to create opportunities in India and promote people who are young and ambitious."