Competition drives innovation.

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Nepotism destroys innovation. India evolved an entire caste based society to destroy any chance of innovation.

It's not competition when Indians only hire Indians.

First point is 100% spot on.

I have seen the second, but I wouldn’t limit it to Indians. Guarantee my Mick-Limey-Kraut ancestors did much the same

I have read the Irish controlled police jobs in New York. The Italians drove the trash trucks.

The problem with India is that an Indian could replace every man woman and child in America and there would still be a billion of them left.

Reducing the cost of labour actually reduces the need to innovate. This is the same reason why slavery ultimately inhibits technological progress even if it might technically be helpful in the moment.