SS, you are right but PARTLY only,
There are Very Good & Honest Taxi services ALSO being operated in India. In case of Mumbai, i'd say services of new taxis like easycab/ quickcab etc are excellent; There is Meter installed and you pay what comes in Meter and drivers are generally fine with their passengers, i'm just sharing my experience using them quite frequently in mumbai.
(perhaps u referred old yello black taxis)