The quality of the applicant's educational institution is taken into account by USCIS/DoL. The applicant provides a statement from a US education assessor as to the quality and scope of their non-US degrees.
For example someone with a 4 year Computer Science degree from a disreputable foreign university might only be able to claim equivalence with a US Associate Bachelors in Information Systems degree rather than a 4 year US CS degree.
While it's always fraught to compare educational institutions from across the world, the United States at least acknowledges that it isn't a trivial problem when assessing visa applications.
It also assumes that a Masters in India is comparable to a Masters in the United States. This is flat out untrue. Only a small percentage of universities in say India churn out bachelors and masters degree holders that can stand toe to toe with their American counterparts. Everyone in tech knows this. There is a reason why the top Indian candidates attend grad school in the U.S.