Indian, Foreign PhDs
It is well known that doctoral and master students in India do not receive a fair treatment in 'seemingly reputed' national institutes. Lowest degree program offered in an institute is 'somehow' considered the best. For example, B.Tech. in an institute is considered superior to M.Tech. and PhD in the same institute. There is no straight forward approach/solution/answer to this issue.
Apart from this..there is another issue too. PhDs trained in India are considered inferior to the US (and other foreign schools trained) PhDs.
I do not want to position my view on this topic here. I will direct you to some articles that are authored by established scholars. It is to be noted that these articles look at social science/management studies discipline. Following are these interesting and thought provoking articles:
1) "Advantage India: No PhD Factories Here" by R. T. Krishnan
2) "Indian B-Schools Still Display Pre-Reforms Mentality" by Nirmalya Kumar
3) "What they don't teach you at Indian B-schools" by Baba Prasad
4) "Management research in India: Current state and future directions" by Naresh Khatri et al. in IIMB Management Review, June 2012.
5) "The ones who stayed behind" by Ramachandra Guha in EPW, 22 March 2003.
6) "Academic Research Productivity: What may be “reining” in the Indian B-School?" by Arindam Banerjee, IIM Ahmedabad, May 2013.
7) "Reflecting on Strategy as a Discipline: An Interview with C.K. Prahalad" by Raveendra Chittoor in Decision, April 2009.
8) "Making Academic Research Relevant: Few Suggestions" by Abinash Panda and Rajen Gupta in IIMB Management Review, September 2014.