What it proves is that you were running slower to that server. You should test against other servers and also multithread. I see now that you switched to a server in India (much closer to you) and you were able to get close to 5 Mbps so it looks like you may have already figured that out. Your speed will vary depending on where you're testing against, that's why I offer those extra servers and options.
You get much slower speed to New York... pretty common at that distance.
You have to route through a lot to get there. Are there providers that can provide the same level of service at that distance? Yes, usually on the high end commercial or private.
TestMy.net isn't wrong. You just don't like what it told you. ...if you read around here you'll see it's a pretty common theme, my results don't always match the other guys. That's because this isn't the other guys test. I'm not trying to make friends, I'm trying to make a faster Internet.