In a population of 1.2 billion, of course not everyone fully buys in to this. I've had the pleasure of working with some Indian devs who were interested and excited by development, and saw a good, non-administrative career ahead of them irregardless of what others thought of them. Of course I never have this pleasure for long - they always leave for product companies, and usually get 200% or more salary into the bargain!
No, but they know the difference between 'manager' and 'not a manager'. It's not just one friend, it's multiple people across Capgemini and Cognizant. You make a good point about salary being important, but it's far easier and more common to become a manager at Capgemini, Cognizant etc than it is to become a good developer anywhere.
Edit: you mentioned many Indian wants to be managers and dont see development as career choice, I disagree. I view the situation as, many Indians forced to follow companies culture set by founders. There is difference between the two.
Edit2: >My Indian friends who work or worked at such companies tell me this comes not just from management and the company itself, but also from a desire for the perception of prestige; to appear 'important' to their families in particular.
hmm, i think your Indian friend shared wrong info with you. Indian Families doesn't know difference between manager or tech-lead, technical architect. Most often middle class families doesn't care about the designation in IT but they do care about salary :)