Often the challenging/interesting bits in those scenarios are done by the US/European/Australian office, and only the implementation details are left to the Indian workers. That isn't conducive to being valued as an engineer.
Management tracks also have higher salaries. If you want to continue in engineering and still make good money, you get a H1B or equivalent and move.
In many cases there have been people who lost jobs and didn't get a new job in over an year and had to move tech roles eventually. Some people had to change career tracks(get into marketing etc) permanently. So there is now a dedicated incentive to stay in the technical track.
Also in the current age, moving to a non-tech job is the long term equivalent of choosing a non-STEM career.
To an extent I felt similar working for average tech shops in Montreal, Canada. I moved to California to live and work in a culture where the IC track is real and highly valued (which is fantastic).
Granted this is anecdotal from interviewing maybe a couple dozen people out of whatever giant number of IT people in India.
Just wondering if there is a cultural/societal push towards the management/boss level that diminishes value towards senior technical roles?