[catchmrbharath]

Actually there are three kinds of people at IITs. The really good guys who are very good at academics and know a lot of stuff and love to hack. These people generally are enticed by trivial ideas. They want to contribute in a more meaningful way. Most of them go for PhD's. These people would love to have startups, but it is very difficult in India to actually have product startups. The startup culture is nothing compared to what the culture is in the US.

Also, most of the IITians (at least the CS and elec guys) get very challenging jobs. These jobs satisfy most of the people.

Then there is the second set of guys who go for Mckenzie, DB kind of jobs. These guys are good, but don't really know what to do. They are confused and take up the most safe option. There are a few here who want to do startups, but they are not able to get people who are really good and who are really enthusiastic. I guess it is difficult to do startups alone.

Then they are the vetti ( lazy) people who haven't really put any effort in their academics or anything else. They would be obviously not enthusiastic to do a start up and you would not want them on your team if you are starting up.

I guess if the startup culture on India changes a lot, then there is a fair possibility that a lots of IITians will do startups. It is changing now, and there is a fair share of IITians starting up. Flipkart is an example. A couple of my friends started this(http://www.desto.in/)