That's their strategy and they assume everyone is stupid enough to fall for it...... they'll always quote you a price in USD because they think it means they're gonna earn a western rate of pay. If you know they're Indian and want to demonstrate that you're not to be messed with, ask them to quote you in INR (Indian Rupees).
If you get a quote in INR you should theoretically be able to work out how much you should be paying. Note that an average PHP coder full time (8 hour shift) in India might set you back 15,000 INR per month (approx. $250/mo). A good one might cost you as much as 30,000 INR per month ($500/mo).
That's how it goes, now toddle your ass back to the dude and show your savvy.
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