You didn't answer my question.

Let's suppose such Indian engineer who lives in India and has the exact same skills as a Google California engineer (including English fluency) exists.

Why does he earn less than the Californian one? Because his Indian colleagues are not as good as him?

On the flipside, I'm sure you'd agree there are incompetent Californians, yet they earn more than highly skilled Indians.

Tell me how exactly that isn't racist.