This is generally inaccurate and not particularly insightful. Indians by and large aren't "paying tax like first world countries". The income tax rate is comparable to other countries and India actually has extremely low tax compliance. Only employees of medium and large companies report their incomes accurately.

As for low quality products, well it's just catering to the price point of the Indian consumer. The number of people in India willing to pay $10 for 50 grams of Assam is so low that it's not even worth putting out such a product in the market. Indians are also notoriously price-sensitive.