But it would. Every case I've encountered where there is a skepticism of Indian workers is due to horrific experiences with such hires. I haven't seen the same applied to, say, Russian engineers.
There may be a another reason, like just the sheer population and widespread English usage, but the result is that Indians suffer an unfair bias that other groups don't have. Things like MS shipping a major product made in IDC, with broken English in the dialogs. Or so many outsourced support and development failures. Perhaps it's because bad experiences are noticed because there was an interaction. But good experiences, say excellent code written by anonymous Google engineers, doesn't have any particular nationality associated with it (except American)? So if all tech support and dev was outsourced to Russia, then Russia would have a disproportionate bad rep?
It's not fair (or perhaps not even fixable in a fair way), but if more interactions were positive, then there'd be less resistance.
I feel bad for having an internal reaction when I start dealing with an Indian, but I try to balance that out by making an extra effort to be sure I'm concentrating on the work. And I know there's tons of far-more-talented-than-me Indians. It terrifies me that this bias might be mathematically incorrect, in addition to being individually unfair.
Having said above I agree that the H1 visa IS being abused but the main issue is L1, not H1. there was about 20% abuse a few years ago and there was a huge crackdown by the USCIS and DoL on those doing that.
[1] http://www.immihelp.com/l1-visa/l1-visa-h1b-visa-comparison.... See the "Prevailing wage", "DoL approval", "Education requirement"