I worked in the US and felt that H1B status was very insecure so I tried to start my own company in India in 2020, and also explored the job and housing market. I agree 100% with all the great financial and work-related competitive points you've highlighted but I believe it misses the human and quality of life factors.
Things that really affected my mental health in India during that time:
1. Food: Lack of variety in food and food ingredients. I like to eat out and cook different cuisines (Japanese to Korean to Middle eastern to French to Northern European). Beef is a major issue in India and fresh sushi can be a hit or miss even in Balgalore. And nothing is available if you're outside of the major metro cities.
2. Prices: If you're in Bangalore you do get a wide variety of food including beef dishes but equivalent quality restaurants and bars in India have the similar range prices as the US (I used to live in the south so it might not be apples to apples). Same goes for food ingredients - e.g. Almond milk and cheddar cheese costs the same in India as in the US.
3. Traffic and honking: Even sitting in an Uber for 30 mins can be maddening for me. Not to mention people actually yell obscenities at each other in traffic jams.
4. Interruptions: India still has power cuts, water supply and flooding issues and the bigger the city (with more opportunities) the worse these problems are. The gated communities in the metros alleviate many of these issues but then you're paying $1000 or more per month in rent or purchase for $600-700K. So same as most developed countries.
My conclusion was that if you got somewhat acclimated to the having a better QoL in the west (which is different than standard of living) you really need to try living there for a few months and see if it makes financial sense, because you'll be paying western prices on a Indian salary. As always YMMV depending on your preferences. I myself ended up moving to Canada.
edit: fixed typo