The first real games out of India will be terrible, for sure. However, so were a lot of the games out of the Russia and Eastern Europe, and now they are almost on par with US in a lot of ways.
It's an industry and location worth investing in. There's a whole lot of people not served well by modern gaming in India, and there's a whole lot of really smart, young, talented , and creative engineers there that would probably love to make games instead of writing EJB and servlet/JSP code all day for banks and insurance firms.