Norman Stanley Fletcher,
Having been in the expat world for a while I have had similar experiences, but not in India. Indian aviation has it's many trials and tribulations, but I must say that I was treated with friendliness, respect and even care and concern by employer throughout my time there.
Things are pretty tight for them right now, and more cuts in the number of expats are likely, but knowing some of the individuals in the carrier I worked for I can tell you that the decision there will be no where near as callous or brutal as you suggest.
It will happen because it has to, especially given the nature of politics in India, but it would have happened a hell of a lot more quickly in many other places.
Regards,
ELAC