[RandomCSGeek]

The problem is not with the exams. When millions try to get past the bottleneck with width of 10K, the competition will obviously be intense. And a developing country like India cannot afford more institutes like IITs, even those that currently exist(the newer ones) need a lot of improvement, especially funding for research.

IMHO, the problem lies with the parents who push/force their children into a race that they don't want to be a part of. Then it doesn't matter if they excel or not, they feel lost and hopeless. The number of classmates I had during engg who had no interest in engg/CS was huge.

Solving this problem would solve a lot of issues. It's getting solved as people are getting disillusioned from Engg == Money. The number of students applying to engg is gradually decreasing every year (80K less this year).