Google's decision is a wise one. What usually happen is expatriates get hired for 2, 3 years to work in China, after they have passed on their knowledge they get laid off.
Why MBAs are Going East Unprecedented growth, good salaries, and the ability to make an impact faster make Asia the new promised land for B-school grads http://www.businessweek.com/magazine/content/10_12/b4171086653619.htm
Sky-high prices for real estates, over-valued stock markets, high inflation. These are all signs of bubble in India.