Should cheating be expected to be more common in Universities in India, and if so, how could any provided credentials be evaluated for authenticity?
This particular incident doesn't happen to be an university examination. This is the final grade 10h school exam that was conducted centrally by the government of state of Bihar, India. BSEB. The given situation is being highly criticized by Indian media and Indian people as well.  

Coming to the question, Yes there is a lot of widespread corruption and malpractices prevalent in India. I can't guarantee you that there had been no cheating involved in passing a student in regard to any examination. However, in Indian universities especially the top ones, the aforementioned phenomenon is quite rare. Moreover, the admissions to these  top universities is quite competitive and often based on entrance exams. You can cheat to pass an exam but you can't score enough to get a rank under 25k out of 1.4 million candidates. (AIEEE) 
That said, there are various other parameters to judge a candidate as well. Even let us suppose that a student has been able to cheat his/her way throughout, there is always an interview round to any job or any position.