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Are Engineers in India "unproductive" or is it hard to "ship stuff to buyers"?

Doesn't seem like it to me.

So how in the terms of this article can one explain that engineers in India are cheaper than in developed countries?

I was surprised by this article; I was expecting the answer to be something about lower cost of living or supply and demand. e.g. maybe India has an oversupply of engineers and lower cost of living, which could drive down wages.

They're unproductive. For example, engineers in India (as opposed to Indian engineers) have made approximately zero of the top web startups.

Zoho? Not sure if it is a "top web app" ...

"Zoho is an Office Productivity Suite from AdventNet Inc. Founded in 1996, AdventNet is headquartered in Pleasanton, CA with offices in North America, Europe and Asia."

http://www.linkedin.com/companies/zoho

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