I recently hired a guy over there to work for our startup. He's smart and he gets things done. He's still a little green, but overall he adds a lot of value to our company. He's just as good as anyone I would have found in the US.
And after we exit/die, the company he starts might be competing with yours.
India has a billion people, 10's of millions of code monkeys, and millions of good coders. The existence of code monkeys doesn't mean you don't need to compete with the smarter guys.