I am in Bangalore. And you can startups everywhere here! There's like 5 on every street in every locality!
I am a final year engineering student and I have already worked in 3 different startups(out of which only one went totally bust).
Banglore has always been the silicon valley of India. May be I will come there to get a summer internship if I can. Do you know any electronics related startup that will give internship to second/third year students? Somewhere I could actually learn?
Actually, there are tons of software related startups. Good electronics startups would be a little harder to find. I will look around and let you know.