This isn't specific to Indian culture. There are several cultures that will emphasize college degrees over entrepreneurship. I know this is hard to understand from a fairly successful entrepreneur's perspective but the cold hard truth is that most entrepreneurs fail. This is what causes the whole 'it's safer to get a college degree' mentality.

I've been an entrepreneur (fairly successful) since I was 13. Yet my folks said I should get a college degree. I did get an engineering degree while 'entrepreneuring' at the same time. Does my degree help me in any direct way ? Nope. But there are several indirect benefits that a degree can get you first amongst which are that in general people think you are capable and well educated. I don't personally subscribe to this thought process but hey, we have to live in this world with everyone else, right ? My degree has opened doors for me and made some people take me more seriously. It has had zero practical contribution towards my endeavors but sometimes opening a door is all it takes. Not only people but even governments sometimes want certain degrees for certain categories of work permits (even if it's totally irrelevant to your work but a degree helps you). Then of course you have the benefits of an alumni network, etc etc. but those are really what you make of them because you can network otherwise as well. But a degree is a formal qualification - treated as such by society and the government. Does it mean you know more ? Probably not. Do people in general think you do ? Probably yes.

I'd still say that in the world today, a college degree matters a lot depending on who you are talking to. It won't matter if you're talking to me but there are a lot of people out there who care about whether you have one or not.