As someone who has a startup do you want to hire talent to do the development at a bargain price? Or do you want to entice talent with stock options? That’s the issue.
Now, downstream, years after the startup has succeeded, the Indians will go home and start their own competing enterprises. The Americans, now wealthy, will start their own companies employing yet more Americans. Which is the outcome that’s better for America?
Correct, a startup is looking first for someone with integrity and can be trusted as well someone with experience and who can move quickly, without supervision. They’ll pay a premium for these traits, but often n the form of stock options etc.