I would agree with knit-in. In India, the classes are multi tiered and
some of the people who work in such establishments make a lot less
compared to someone in the middle-class.

I think its something people are used to. More so depend on to sustain
the middle and upper-middle class society. In this day and age you
can still afford to have domestic help in India without being
super rich. That wont be possible if the vast majority was paid close
to the standard of living. Now what would be a standard.. is another debate.
I dont think there is a simple answer to that one.

I'm sure you've observed some of this before.