Nov 19 2012: I believe to a degree what you are describing is already happening. If you want to be a farmer in Nebraska or a factory worker in rural Atlanta you will probably earn less than a bar tender in New York, but the cost of living in Omaha versus Manhattan is strikingly less. We have these regions in the United States known fro doing less glamorous work and those areas typically have a lower cost of living. The problem with entirely replicating India's cost of living is complex. From my understand, part of the problem is the quality of life a job at a call center in India will get you in India is lower than people in the US for the most part are willing to accept. Whether it be because of Unions or Government regulations or government subsidies for unemployment or just a different understanding of what people deserve.
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A comment on Conversation: Idea: "Country-in-a-country" special economic zone