Some of the things you have said are true. But not that an american UG is better than masters. My point of view is that India does not have a good education system. But those who reach higher educational levels do so by competing with millions others. Therefore brilliant students enter system and brilliant people leave system, irrespective of the system itself. Because they are brilliant, they do reasonably well most of the time. This is unlike western countries where even morons can persue higher education if they wish to. They will be trained to do a particular job alright, but in a very limited sense. Remember, Indians can go anywhere in the world and work, no westener can ever come to india and settle down