Your numbers on most things are way off. I returned home end of last year and setup shop this year in Bangalore. I have access to Naukri's database of quality assurance engineers and their current salary listed. I also visited campuses to recruit fresh grads. $200/mo won't get you even fresh grads from the top 20 universities in my state. $60 is no longer rent - it's about 5 to 10 times that for a 2000 square foot 3 bedroom apartment that's not in a very posh area. Setting up a partnership, including legal fees cost me around $400. Travel, you are spot on in that cheap options exist. BTW, days of 2 rupee and 4 rupee bus rides are also over. It's about 5 times that in a regular bus.
I'm giving specific numbers here mainly because there may be Indians who want to return home and start here.
I'm giving specific numbers here mainly because there may be Indians who want to return home and start here.