I'm not sure if it is a problem unique to India, but here Angel investors are extremely risk averse. Other than looking at the competition, objective, market opportunity and potential, they focus on current revenues A LOT! Their decision of whether to invest or not depends almost 80-90% on whether you are making steady income already, and that I think is the biggest dealmaker/breaker than all other criteria.
I'm not sure about the situation in India, but I can say that startup investments are risky and angel investors are risk averse. It's always good to see indicators that lower the perceived risk: a strong founding team, traction, revenues, profitability, etc. In Silicon Valley, great traction with customers can often lead to profitability, so traction without current revenue is still considered a good sign. It's possible that traction is not as well correlated with profitability in other locales, and so traction alone would not be a strong enough indicator in those places.