I'm not from India but my parents are from Sri Lanka and when I went back there I was surprised to find what seemed to be middle class families having maids and butlers (they call them servants). Maybe some rich people in India must feel like they have the right to do it because they grow up having those people cater to their every need
Which is better for the country: asking people to employ domestic workers, or have higher unemployment?
Let's take South Africa, which I know better than any place in Asia. There's high unemployment. The government encourages people to hire domestic workers. Checking now the rates are about US$ 1/hour. These are maids/domestics, gardeners, childminders, caretakers for the sick and elderly, and so on.
I grew up on the US, and from my family learned a strong moral principle that it's best to do everything yourself, rather than have 'people cater to my every need' at home. As an adult, I followed that same moral principle.
Then I bought a house. With a garden. A quite beautiful garden that I wanted to keep. I couldn't do it myself. More importantly, my rates as a software developer were more than 8x that of a gardener. I fought that moral training and realized that it's little different than regularly going to a mechanic to maintain my car.
The position of the South African government is similar. If you have the money, then why not use it to hire people to help around the house? Living in South Africa for a short time, I learned about some of the advantages of having someone who would do laundry, including ironing, sweeping, or mowing the lawn. None are tasks I enjoy.
As you (and the essayist) point out, that's fraught with difficulties. At what point does that turn into a sense of entitlement? How can abuses in the workplace (that is, the home) be monitored and reduced?
You can read some of the difficulties and different viewpoints at http://www.sacsis.org.za/site/article/473.1 .