If you are an entrepreneur in India, most probably you were lucky enough to be born in 20% of 'richer' family of India, and more often than not, a failure might put you back with the rest 80%. That is too much to bet, especially in a place where start-up in Silicon valley sense is quite difficult to setup.
Second, a lot of people start companies and do business in India but since those are not in the traditional IT or other VC oriented sectors, they are not heard of that much in these circles. Also not a lot of these companies would be doing the "innovative" stuff but building businesses in well tested markets.
Yes. In the West, it's your ideas that fail; out in the East, it's you who fail.
One word answer; culture.
In India, the downside is unbounded. Peru looks wealthy by comparison. 46% of the urban population doesn't have access to improved sanitation. I know a doctor in India who can't afford a water supply with one nine of uptime.
Under the same circumstances, I'm sure you'd also discourage your daughter from marrying an entrepreneur.
Granted, you probably wouldn't be locking her away from the outside world, discouraging her from getting educated (makes her less marriageworthy and harder to control), or selecting her husband for her. But that's a separate issue.