That will only last so long until consumers reject the terrible quality and move on to another, higher quality competitor - so the wheel will continue to turn and high quality developers will still be hired to produce high quality work.
An Indian employee's salary being 1/5th of an American's, doesn't mean their cost to the company is only 1/5th. There is a general organizational/overhead cost to taking on more people. This cost, for one additional person, may be higher than even the American's salary