The tech bubble in the west is bug, sure - but that's not the same as organisations with 100s of thousands of employees selling bodies as cheap as possible.
Furthermore, it's naive to think India is the same as western countries - it's a huge country with it's own unique culture (cultures, really), history and languages. For many Indians, software development isn't seen as professional career path; a dev job is little more that a vehicle to becoming a manager. And being a manager, in charge of people, elevates your social standing, to a position of kudos and respect - that doesn't happen in the west.
Furthermore, it's naive to think India is the same as western countries - it's a huge country with it's own unique culture (cultures, really), history and languages. For many Indians, software development isn't seen as professional career path; a dev job is little more that a vehicle to becoming a manager. And being a manager, in charge of people, elevates your social standing, to a position of kudos and respect - that doesn't happen in the west.