What a huge mistake in my opinion if that goes through. Everyone who worked with indian companies should keep an eye on what's going on. Far too much more damage can be done!
I think you are comparing it to the wrong scenario. Hiring for your own company(Uber in this case) is far different than outsourcing to an Indian company like Infosys and TCS. Microsoft already has a huge presence in India, and so does Amazon. I have interacted with engineers in FAANG in both India and the west coast, and there is no huge quality difference in people on the same job levels.