hmm...let me share my views on why indian games particularly suck-
1. Why Bad Graphics? :There are no proper game development institutes or courses in india. For the artistic part, you can join any animation instt. & they will teach you the 3d related stuff. they will never teach you how to model, texture etc for gaming purposes. although there are a few institutes popping up which offer game art courses, they are pretty much worthless. There's a lot of technicality involved with 3d art for gaming & these are not taught properly. and there is a typical yindian mentality in most students that if its not taught in institute, they will not learn it on their own. Most students who join such courses come from a totally non artistic background (haven't even done a single sketch in entire life). This is the prime reason for low quality in the game's graphics.
2. Why Bad stories/ gameplay/ game design? : Same as above, lack of knowledge & experience. & no proper institutes teaching game design. In gaming it is not enough that you have an idea. The idea is useless until you can turn it into a fully fleshed out concept. people here spend very less time in pre production. i am not even sure if they write Game Design Documents or greybox their level design(which is basically testing the gameplay elements of a game with the most basic assets before textures & all that eye candy is used). For example,in a game like CoD, a greybox test would use one or two low poly basic characters, boxes in place of buildings & characters etc & then the game will be played to see what it feels like. there is constant testing involved in every phase of the game. But these practices are not followed in india. here everything has to be rushed. just release the damn game in whichever way possible.
3. Why so many bugs? : Programming for games is a lot more different than coding a software. you have work within the bounds of a game engine, its pros & cons, limitations & be very specific. There are a lot of things to consider like the physics, texture streaming, LoD meshes etc etc...now these things take a lot of time. constant testing is necessary to identify bugs & eliminate them. & like i said above, testing takes a back seat in indian game development. most games are released without testing or very little testing resulting in an unplayable game.
Apart from these, investment is also a concern. if you were to develop the mahabharata into an RPG, it'll take atleast 3 years (most AAA game titles take around 2-3 years to be completed). If it is developed in ubisoft which has a lot of studios around the world, its possible that the game can be developed sooner (Just as AC keeps coming out every year). SO, you need a lot of funding if you want to work on a project for 3 years while not seeing anything come your way within that 3 years. How many people will want to invest in something like that? we need better game publishers for long time development. This is why you either see casual games or bollywood games.
But the scenario is slowly changing. there are a few developers who are taking this field a lot more seriously. they may be working on small casual games, but the quality is a lot better than that of TRINE games which claims itself as the largest gaming company in india but is actually the worst. this company along with some shitty bollywood film makers are actually insulting our country by giving out an impression that indians suck when it comes to creative work.
Some notable indian companies are-
Yellow Monkey Games
Synqua
Apar Games
Kreeda Games