It is less from Western point of view not from international. I'm sure that in Latin America and Eastern Europe prices are quite similar and time zone differences are more acceptable. India lose in this price range because of cultural differences as well. Usually those are small details like matching Christian and/or international holidays (therefore no conflicting days off) but sum of those details are really significant.
Again your point just confirms fact that Western developers shouldn't worry about competition from India.
I'm in Uruguay, and Tata Consultancy Services (TCS) opened a huge facility here to address just that (the time zone differences) as we're in the GMT -3 timezone.
But they're having trouble filling positions at their salaries, most decent programmers here earn more than U$ 1.000 (I make U$ 1.500 myself, and want to make at least twice that, so I'm about to start my own company).
An acquaintance had good experience with Bulgaria. It was a small outfit, just 5 people to match another 4 people working in US. American company was their only customer.
Again your point just confirms fact that Western developers shouldn't worry about competition from India.