For a web startup in India, the only infrastructure hurdle I can think of is uninterrupted electricity (it's not as bad as it's made out to be) and as someone said earlier, this can be easily solved by power backup which is affordable in India.

Corruption only matters if you're in a hurry to register your startup or get some licenses. Refusing to pay bribes in India only makes the processes a bit slower. People say this exact attitude is what keeping the corruption alive in India. But it's high time we need to move on. One can't forever say "let India become corruption free, then only I'll plan on contributing to the country".

Despite all its flaws, the Indian economy is growing at about 9% a year and this level of growth is most likely to continue for many decades to come. http://bit.ly/f8OukZ . Not to mention India is one mammoth market. Those who miss this train will only repent.