Indian IT services and consulting firms long realized these problems. Its just not possible to expect to hire the best and expect them to work for McDonalds burgers. So they state honestly what they want and what they can pay.
At the same to be cognizant of your business, profit margins and by that definition what you can pay and remain profitable is a good thing. Not every shop has to be a world changing venture, and if you can pay low and hire people good enough to run your business is just perfectly Ok.