The Indian culture gives a lot of importance to having good math skills. If your mom asks you to get something from the neighbouring shop, you better have your math right. Kids are always taught to count the change and demand the correct change after a transaction.
So, addition and subtraction have to have on the spot without the help of a electronic teller. Perhaps that can give an insight into why I insist that the Indian culture requires you to be sharp with your basic math.
I have alternate story about maximum "fails" in the board exams. A lot of students dread Hindi (an artificially imposed third language in South India) and to a lesser extent English.
Yeah, I agree with your premise that good secondary math skills are a result of ultra-competitive nature of college admissions and job market. But, it still doesn't take away the fact that a student with average overall score in India will be better off than an average student in US when it comes to "usable" mathematics.