I'm an American born Indian and my two cents is it's supply and demand. There are a fuck ton of developers in India. Some percentage of them are really good while the majority range from alright to really bad. This isn't because Indians suck as engineers or white Americans, for example, are always good ones. I used to teach upper level CS as a university TA and believe me when I say that's hardly the case.

What's true about India is that there's a glut of engineers who don't have any passion for the trade itself (this isn’t everyone obviously) and thus have no drive to do well other than due to social pressures. This is a terrible state of affairs and leads to people either doing the bare minimum to scrape by or trying to cheat the system thinking they won't get caught. I've personally seen both situations and it's embarrassing.

India is due for a lot of social and societal change and the way education and careers are determined has to be a big part of that. The status quo is a recipe for disaster and it doesn’t help that our culture prefers not to rock the boat instead of engaging in long overdue structural change. And looking at the kind of leadership elected by the people over in the old country right now, I don't see that changing anytime soon.