In my limited experience (hiring some Bangalore-based developers, working for a US-based company, we have a full office in both locations), this isn't all that uncommon.

Salaries can start VERY low. Shockingly so, at least to me. And they ramp up quickly. The unfortunate side-effect is frequent job-hopping - it's easier to get a big raise by moving (not that dissimilar to the US, just orders of magnitude more impactful).