DOCS UPDATE: Fix incorrect .env file location in Backend Setup instructions

Open README.md and review the Backend Setup and Start Development Servers sections described in the issue. Update the numbered steps, clarify that .env belongs in backend, and ensure the backend command is shown as running from backend with uvicorn app.main:app --reload. Done means the documented setup matches the working directory and file location.

Is this related to an existing part of the documentation?

• Yes, it is related to an existing section

What needs to be updated?

📌 Current Documentation Issue

The current README instructions for Backend Setup (Section 3) contain incorrect information about where to create the .env file and from which directory to run the backend server.

Specifically:

• Step 3 instructs users to navigate to the backend/app directory (cd app)
• Step 4 tells users to create a .env file (implying it should be in backend/app)
• Step 2 under "Start Development Servers" instructs running the backend from backend/app directory

✨ Proposed Changes

1. Remove the misleading navigation step - Delete step 3 that tells users to cd app
2. Correct the .env file location - Update the instruction to clearly state: "Create a .env file in the backend directory using .env-example as a reference"
3. Update the backend server start command - Change from uvicorn main:app --reload (run from backend/app) to uvicorn app.main:app --reload (run from backend directory)
4. Renumber the steps accordingly after removing step 3

Updated Backend Setup section should read:

• Step 2: Install dependencies
• Step 3: Create .env file in the backend directory
• Step 4: Obtain Supabase credentials
• Step 5: Get Groq API key

And the start command should specify running from the backend directory with uvicorn app.main:app --reload

📋 Additional Context

I encountered this issue while setting up the project for GSoC contribution. The setup failed when following the current instructions, and only worked after moving the .env file from backend/app/ to backend/.

This is a critical fix as it prevents new contributors from successfully running the project on their first attempt, which can be discouraging for newcomers.

Relevant Documentation Link (if any)

https://github.com/PulkitDadwal/InPactAI/blob/documentation_fix/README.md

Record

• I agree to follow this project's Code of Conduct
• I want to work on this update