1: Indian wages are going up. The difference gets smaller every year.* Note that many of the best Indian developers are paid in USD, and even for the developers that get paid in Rupees, the company they are hired by locally often does get paid in USD by the American company that buys their services, so the fact that the Rupee goes down doesn't necessarily offset their wage increase for the American company that hires them.
2: American workers can still meet in every Tuesday. It's hard from Hyderabad.
3: Time difference can be a real issue (but of course it can also be an advantage).
4: It's often easier for Americans to understand American English than Indian English.
5: American developers might understand the American market and competing products better.
* https://www.statista.com/chart/25729/india-annual-average-sa...