"200 percent flawed?" Really? Hmm. "Indians don't want a foreign MBA?" Ok, sure whatever you say. They must not if you say so.
I live in in India by the way - I hire local MBAs, so I do have an appreciation for them. You have two true facts but they do not refute my logic - 1) Indian MBA's are competitive (true) and 2) more affordable than foreign MBA's. You make an argument that based on this locals prefer them to foreign MBAs. Ok, no issue there. Sure if you do an NPV you might find that the initial cash outlay makes a local MBA a better choice (when speaking about the top 2 or 3 Indian MBA programs) than US Ivy's. That's an interesting and debatable conjecture that does not refute my logic.
My logic is that the examples of 1) switching from a nonprofit to a for profit job and 2) moving from a low income country to a high one would greatly skew the distribution of a percentage change in income stat. I postulated that this would support why many in India might want to get an MBA degree. That banglalore and ahmedabab b schools might be preferable on an NPV basis does not refute this logic. It merely states that India has two very competitive schools, which although interesting, is not important nor contradictory to my theory.