While we have always had the rule about questions that were too localized, this question dates from a time on this site when the rules weren't as enforced. This is a normal phenomena - at a point in time members rediscover questions from an earlier period and question why on Earth it isn't closed. This has happened several times in the lifetime of the sister site StackOverflow and has resulted in several question purges.
But when I say "rules weren't as enforced", I must emphasize that is a position taken by the community as a whole - a slightly more lenient attitude was important in the early days due to low traffic volume.
With regard to the question currently: you have to consider what is "too localized"? India is a large country with a massive population (roughly 2.5-3x the population of the USA). Additionally, even though the question uses some subjective terms, it is still ultimately quite a specific question.
While I am not advising either way whether the question should be closed, the above is some guidance on what should be considered before casting a vote.
I hope that answers your question about how that question still exists, and how the community should evaluate whether it needs to be closed.