To get a good job in India, you will need more than skills - connections and a limited edition degree.
Actually, why not Canada? Salaries are again much lower than Silicon Valley, the timezone is the same, the language is the same (except in Quebec), and it would be great to stop Canadian software engineers from moving to the US in droves due to lack of opportunities at home.
Indian engineers making more than 20k-25K USD Per Year are considered top talent in most companies across India. Are there engineers making more ? Yes absolutely. Are they a minority ? Yes, absolutely.
Also, in every company there are jobs that are trivial and jobs that require talent. I assume the more trivial jobs like bug fixing will be outsourced, while the rest of the engineers are kept for product design.
Cost of living is a red herring. No one’s going to pay me more if I live in Manhattan rather than the suburbs of Boise if they can avoid it. It’s all about the locational differences. If there’s a thick, liquid market for the product you’re selling, your labour, you’ll get a good price for it. If there isn’t employers have substantially more power to set wages. A lot of the reason engineers in SV get paid more is that they’re just better but the engineers in Boulder are pretty great too and fewer of them are getting those wages, even fewer in Boise. All about the competition for talent.
But it's complicated. For that matter, you could argue that the perks of Bay Area weather and great number of employment options should make the Bay Area attractive even if the salaries weren't great relative to CoL. But there's enough competition among large employers who generate enough value per employee that they can afford to offer top-shelf salaries so they do so to entice the people they want.
To the last point, I don't expect dramatic short term changes. But to the degree that things tilt more in the direction of remote work and small distributed offices, I expect some equalization of salaries at least within the US.