In the US, entrepreneurship is supported by a wide range of government and industry concepts. For example, the US military, specifically DARPA, the Defense Advanced Research Projects Agency and research universities (and government research grants to universities) play a big role in seeding new industries and entrepreneurship. Also, the US patent system, which these days is often sited as an impediment to innovation, is also key to supporting entrepreneurship. Our bankruptcy laws are also an important legal construct in support of risk-taking. Our investment banking and public equity markets are also key.
Not to get all philosophical, but it takes a certain societal mindset to nurture entrepreneurship. I have some experience doing business in India and specifically as it relates to India I think the key is social change more so than government support - at least as a precedent to government support.
Clearly entrepreneurship in the US is a product of many generations and hundreds of years of tolerance for risk taking - I suspect that can happen much faster in developing countries now. Just getting here (to America) and surviving took a lot of balls and ingenuity so the mindset of the first european settlers here was one of taking huge personal risks and innovating just to survive not only without government support, but often fighting against government. fast forward a few hundred years and 'we the people' produced a piece of paper called the constitution. And baked right into that constitution (article one, section 8 specifically) is the seed of our patent system as a way to help spur entrepreneurship:
, section 8, clause 8 states: The Congress shall have power ... To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries;
So for India for example, though much more a social trait than per se a 'government' function, making failure, risk-taking and ownership socially acceptable seems key. Not that failure is universally celebrated or even accepted in the US, but at least there are pockets of US society where the role of failure is understood. Considering the results of our most recent presidential election one can see that a majority of Americans (in key US states at least) still don't understand how entrepreneurship works. It appears that even with a pseudo-entrepreneur as president elect, a majority of Americans believe in protectionism, tariffs and walls as a path to success. But i digress.
I could see the Indian government perhaps sponsoring an advertising campaign to help clarify the role and benefits of accepting risk and failure. It's not an issue of brain power, India produces lots of brilliant minds. Those brilliant minds will figure it out, but it will take time.