As the Indian economy has improved, employability of engineers has improved. As a result, many of the fresh grads and seasoned engineers find it okay to not do a job for some time and try to start on their own. (feeling safe that they can get employed whenever they want) Thus, barring some geopolitical upheaval, future of Indian technology is definitely going to be better than its present.

However, the statement “when all of the action is in Bangalore, who needs Silicon Valley?", is very much an overstatement. While India does provide opportunities for some unique business models (based on large population, unorganized markets), the "action" there is significantly less than the "action" in Silicon Valley.