In India we emphasized more on the transmission of knowledge through oral tradition and so type was given secondary importance. Also the number of languages present in the country made it next to impossible to have a unique typefaces with identity. The design focus was more in creating an universal type face (finally it boils down to supply demand) than an unique face that represents a specific cultural identity.
At least there is still scope for Type face design with print media, but web has totally devalued it. Best example is Google Noto font which can be used to in any language. Type in India will regain its importance after all the technical problems of displaying type on web are solved.