I've worked with both brilliant and mediocre people from many countries, including India.

It's hard to criticise offshoring without seeming racist. The problem that I have seen is not the developers - it's that the people in charge are fixated on the hourly rate as the key metric, and the suppliers are then complicit in gaming that metric.

As soon as you make the lowest hourly rate the most important metric in software development, I guarantee you that quality will suffer.