I've worked with some engineers in India that aren't getting good salaries. They were much smarter than some people in the US that are getting good salaries.

Salary, in my experience, really correlates with nothing. It doesn't make sense, but that's my experience.

In India too its the same, the actual smarter ones end up earning less than the morons.

May be you get what you reward. You reward crappy programmers you get crappy output.