This is 100% true. In my branch (3D artist) i often competed against people from India. When i see very low bids, i go and click on their portfolio. It is usually very bad portfolio, and they also have very bad ratings (on platforms like Upwork and freelancer, where clients can rate you). But i also know some extremely good 3D artist from India. I don’t know their rates, since they don’t need to use upwork and similiar, people come to them. One of them like to travel a lot. Europe, Asia, etc. Very expensive places and he can stay long time there. He is making some good money when he can afford it. So, he cant be cheep.
To become good it takes time. When time pass, if you are good you are going to realize it very quickly by number of clients contacting you for work, and by rates they are willing to pay you. So i will say without many doubt, if you are good you are going to charge accordingly, regardless of place where you live… There is only one “loophole”. If you are lucky to find someone dedicated and talented, who yet didn’t realized his/her potential. But there is very narrow window of opportunity to find such people, between those who work bad, and those who are good but charge accordingly. Cause they will realize how good they are soon (if they truly are good).
The only difference between those who live in cheep countries and expensive, but with same level of quality will not be rates. It will be what you will do with money. In cheep country like India, if you make several K $ a month, you will have nice savings very fast. Therefore, depending on what type of person are you, and what are your ambitions, you will either save to invest in your business, or you will have more free time to spend for fun and travel.
That being said, there is another factor to consider. If you can live good upper middle class life with, say 1500$ a month in India, your incentive to push yourself more to improve on all aspects is (in general, but again, depends on your personality and ambition), but in general it is much lower then someone who have same type of quality but live in US. 1500$ a month is barely above poverty line in most of US as i understand. So, if you want to have family and to improve your situation, you will have much higher incentive to push yourself more then those in India… Therefore, higher quality, dedication to work, professionalism etc can be expected in general from people who live in highly developed countries. This is just the way it is.