May be or may be not.

But it’s the reality, people work at India get 8 to 10% rise every year as an average. How about people in the USA?

I would say it is fine. It would increase the wages in India and at some point the pay would equal to the person who lives in the USA.

Location based pay shouldn’t be there, as I have seen the differences in real life.

A bunch of people works on a ship, all part of same team does same job. But their pay is based on their home location.

People who came from Nordic region earn more and people from east Asia earns way less, though the job is exactly same.