India is just an extremely high-variance country. It has produced people like Google's Amit Singhal (Search Quality), Sanjay Ghemawat (MapReduce), Vic Gundotra (Google+), Sundar Pichai (Chrome), and Krishna Bharat (Google News). And it has also produced many people who aren't worthy of the title coder, let alone engineer.
Rather than wringing one's hands, just ask programming questions in interviews and let the code do the talking rather than the nationality.