I would say that a good 30%-40% H1B's are fakers. They lie heavily on their resumes...they do a 2 month crash course and put 5 years experience. Because of these folks, the IT salaries have decreased and US workers have a hard time finding jobs.
For example: an experienced BA pay rate is about 50-60 dollars an hour but I have seen indian recruiting firms advertise BA positions for 20-30 dollars an hour.
Exactly, and its just not an Indian problem plenty of Chinese workers in on this racket. In fact, when my firm was recruiting, we would rather take an IIT grad over some Chinese U like Peking and Tsinghua. Besides the obvious english problems, even the best Chinese Universities are a joke.