Web hosting is the essential part of running your website on internet. If we compare USA hosting Vs India hosting, no doubt both are doing well. This very much depends on datacenters they use. Many Indian hosting companies provides reliable and stable hosting services including VPS deals. No doubt USA hosting companies provides a quality hosting services but Indian hosting now are very much improved and deserve to be the best. At many places you will be forced to consider about Indian hosting services. At many places on internet, it can be read that USA hosting services somewhere lacks in many aspects and bigger in cost. There are something good and something bad everywhere. But overall Indian hosting is cheap and reliable. If you want to purchase dedicated servers in India, try VSNL & Reliance and many other popular hosting providers. They are the best in India but again Bandwidth is the major issue. Also this is important in which region you live.  If your visitors are based on Asia region, you should host your website in India. This is almost sure that the other countries in Asia can get the similar results.
At many points US hosting supposed to be better. For example security, datacenters and uptime. But India hosting has now been very strong and updated equipped with latest featured servers. US hosting companies are leading in technology and ruling the hosting world also. Hosting in India has now been very much cheap, reliable and ofcourse the best.