Offshore Indian devs make sense when you can have a large Indian division so you can amortize communication infrastructure/process management over a lot of heads, and you're building for international customers so you're not paying an English -> X tax inherently.
What evidence is there of the quality of Indian devs specifically?
One signal I'd expect to see, for example, would be success in programming competitions. Here's the list of winners of the IOI competition [1] - India has won 3 times.
Meanwhile, Turkey has won 4 times, Estonia has won 5 times, and Vietnam has won 22 times!
Why should we suspect that there are more or better developers in Indian than in any of the countries that has produced more winners??
[1] https://stats.ioinformatics.org/countries/?sort=medals_desc
And outsourcing certainly became a thing though not in the way everyone predicted. There are far more software engineers in the US today than there were in 2004.
Just recently I asked a dev there for a POC of a feature with decent specificity and ended up with about 8k LOC of spaghetti. I re-wrote it later in a few hundred. This is about in-line with my career experience.
I've had a few standout devs there but it does feel like a lot are putting in the bare minimum or are just working really far outside of their abilities.