There are three main reasons
1. Lack of local demand
In the year 1994, the Internet was born and Amazon was founded. I don't think people in India (including myself) had an easy access to computers at that time. There were few companies like HCL which started manufacturing their own computers using imported microcomputers, but there was a lack of local demand.
2. Government policies
Our government, opposition other political parties (one of which holds the centre now) at that time were busy in dealing with other political, social issues which were important for the development of our Nation such as Demolition of the Babri Masjid - Wikipedia, 1992: The Securities Scam , THE GREAT SUGAR SCANDAL etc.
Unfortunately, there has been a pattern which is followed among Indian entrepreneurs. Whatever has worked in the US, will also work in India as well. But, we can’t blame these risk takers. The lack of investment/ support is the most important reason these entrepreneurs have not taken bigger risks.