If anything, the way the country caps work in the US right now make integration harder, because no matter how much they try to integrate and be part of the local community, they could be kicked out at any time. That just encourages people to have one foot out the door at all times.
If India were divided into smaller countries like Europe, the same South Asian population, culture, and diversity would persist, but the artificial constraints tied to the name "India" would disappear.
Specific to North America, most people actually like the idea of someone coming from halfway around the world to try to be a citizen of their nation. They do not exactly like the idea of being "carpetbagged" or being "flooded with people who do not integrate" and those perceptions exist not wholly out of imagination.
They do exist wholly out of imagination in this case. You are professing your opinion and stating it as fact. As far as actual immigration statistics go, Indians are a tiny minority, disproportionately successful on wage, crime, and education metrics, and most importantly, legal.
>offers people from a handful of Indian states (and the highest castes).
I really do not get what caste has to do with anything. Which states ? What is the mechanism that favors people from these states or castes ? The legal immigration pathways to the US/Canada are either education or work, and neither of them has any preference for state, caste, etc.