To illustrate his point he mentions the common practice of outsourcing to India to put warm bodies in front of computers. He certainly doesn't say that as a rule programmers from India are not competent. He does say that overly cheap labor from India is usually not as competent as their better educated more experience Indian counterparts. I would make the same claim about US programmers.
I actually meant to go further: the low-paid programmers put in front of computers aren't allowed to be highly competent, regardless of their actual aptitude.