Yes, you know, I actually remember those times myself, at the very beginning when I first came to Mexico. And true, in very touristic regions that is always the case. But I haven't experienced it at all for the longest time...
Never been to India myself, but regarding the ripping-off of westerners, my parents have told me that they felt it very strongly. Of course you have to add that they were there for a week, visiting the Taj Mahal and other touristy sites. So I guess it really depends on where you are and what you do.