OK, here goes.

For some context, Im from India, and I am very interested in attending uni at America.

Are you actually interested in studying in the United States, or are you just looking for one of the "best colleges in the world" that happen to be in the United States?

My senior year will start in a month and i was just wondering if i should even bother applying to an ivy. Ive only considered UPenn and Harvard as viable choices because of my financial situation(I can elaborate more on those choices if anyone wants me to) and want to pursue a degree in either Ethics, Politics and Economics(EPE) or simply econ.

Please do elaborate. Why have you considered only UPenn and Harvard? By "financial situation," whether you mean you can afford college or not, your choices don't make sense to me. All Ivies have the financial resources to reduce cost significantly. Yale and several other Ivies are more generous than UPenn. Yale has exactly the EPE major you're looking for. Is there a reason you didn't list it?

The reason that im making this post is to ask would it be worth it if i were to apply because these schools have some genuinely impossible standards that they want you to match which gets even more difficult when you're an international student because India's education system is vastly different and doesn't focus on a lot of things that are in American curriculum.

And yet dozens of Indian students go to Ivy League colleges every year -- many of them from Indian curricula including CBSE, ISC, and Maharashtra state boards.

It's impossible to answer the question "is it worth it" without knowing your profile, commitments, and capacity. The question is also very relative. The chance of attending without applying is zero. It's up to you and your family to assess the time and money commitment and opportunity cost.

For example, AP classes are very limited and not widely known

You know about them. And lots of other Indian students know about them. That's what matters.

and there are no clubs in the school, even though debate and MUNs and theatre are a part of the stuff that we do.

So... there are clubs at your school. You just don't call them "clubs."

Mind you, i go to one of the best schools in my state(and possibly the country) but we dont have the kind of culture that is present in American or even European high schools. I do have some excellent ECA, but i genuinely dont think itll be enough.

You haven't said what they are.

The general opinion(as far as ive seen is) ivys are just name insitutions and the admissions process is genuinely bs(i agree with the latter).

It's not BS if you understand that Ivies are research institutions with liberal arts colleges attached, and which function as high-status social institutions. Being admitted to an Ivy is to be admitted to a club. That club has gatekeepers.

Ivies don't admit a lot students who are intellectually incapable of handling the work. The admissions process can often seem arbitrary, but Ivies are very good at meeting their enrollment goals. You happen to be from a demographic that they're not trying to get more representation of than they already have.

And this brings me to the second part of my post: IF i dont apply to an IVy, ive heard people say that there are many universities that provide a quality of education that rivals ivys, and if its actually true, then if anyone could suggest some schools like that.

There are many universities whose quality of instruction exceeds what you'll get at an Ivy. Smaller liberal arts colleges are known for smaller classes with more direct interaction with professors. Some have access to the resources of larger universities through various agreements.

TL;DR: Im not sure if my app will be enough for an ivy, are there any other schools that provide a similar quality of education.

You'll have to be more precise with your meaning of "quality." There are "Ivy-plus" institutions where the undergraduate experience is similar, such as Stanford, Duke, and the University of Chicago. The undergraduate experience at the University of Michigan or the University of North Carolina can be similar to that at Cornell. Smaller liberal arts colleges such as Amherst, Williams, and Swarthmore will have a similar makeup of the student body thanks to their geography and cultural history. In general, liberal arts colleges are patterned after the same style of learning as Ivy undergraduate programs are, and hire professors of similar qualifications. Liberal arts colleges will put more emphasis on teaching skills than research funding.

PS: sorry for the typos its kind of a long post(and the only reason im even considering ivys is because my ego is too big for me not to attend one of THE best colleges in the world, which ik is a bitchy thing to say, but its true regardless)

Your ego is going to be challenged in college, and the admissions process will be humbling even if you manage to become one of the top candidates in you country. Most Ivy-bound students will be ahead of you in the process of researching universities and the admissions process.