Mercury News a few months ago had a story on the rush of VCs to India and the “new garage culture” of the start-ups in Bangalore and elsewhere a la Silicon Valley.

In the first nine months of 2006, VCs have made 53 early-stage investments in Indian start-ups worth $355 million — nearly twice as much activity as the two previous years combined, according to Venture Intelligence, a Chennai-based research service focused on private equity and venture capital activity in India.

With the Indian culture worshipping success and stigmatizing failure, it remains to be seen how the environment responds to the inevitable failures.

Also with basic infrastructure still pitiful, it’s hard to believe that “a new garage culture” will take roots in Indian cities like Bangalore and Hyderabad.