The problem here is definitely bigger than a software error. For students from small towns or poor family, education is their only shot at a better life for them and their family. You grow up in an environment where failure is simply not an option. I was once one of them. The cost of failing is incredibly high. Kids at this age should not be under such pressure.
Fortunately, winds are changing directions. Young Indians have come around to the prospect that engineering, medicine, law or civil services are not the only career options. Success of companies like Flipkart, Paytm have played a massive role in turning students towards entrepreneurship. People in major cities are open to pursuing unconventional careers on Youtube, Instagram, Blogs etc.
But there's still a massive way to go. I'd estimate it will take another generation or two to bring about this cultural change that marks are not everything.
If you need to grasp the intensity of the problem, be aware that multiple prime ministers have made multiple remarks over the years, telling the kids that the exams are not the end of their life[1]. Movies have been made to emphasize that skills/passion is way more important and valuable[2]. To see the after effects of such an education system, read The Made-In-India Manager[3]. Some positive effects are that you get really ambitious and competitive people out of such a system. On the negative side, you'd see that many Indian workers do not really have a hobby or life beyond work.
[1] https://www.hindustantimes.com/india-news/board-exam-is-not-...
[2] https://en.wikipedia.org/wiki/3_Idiots
[3] https://www.goodreads.com/book/show/42611062-the-made-in-ind...
Given the inane (at best) nature of most of what appears on youtube, instagram, blogs, etc., I'm not sure that's especially positive.
Remember: the purpose, or at least the effect, of an education system like this is population control. In fact, general education isn't even the primary purpose of an education system like this.
Everyone knows that hinging futures on a single test means that success comes down to 3 things: how well a given person can take a test, how much money it's possible to funnel into tutors/the qualities of one's home support network, and luck. It's not about how well a given person will do in a knowledge-based position- by spending so much time teaching to a test the ability to think critically and collaborate with one's peers is severely curtailed, and selecting for good test-takers does not lead to selecting the best people for a particular job.
And the economy is too small to have enough high-skill jobs for the number of potential applicants. Contrast the US, where while applications to knowledge-based education are competitive, are certainly not matters of life and death- there's typically enough money, positions, and second chances to go around. That said, the situation was much better 30 years ago when low-skill jobs were still highly available, and the signalling war is starting to become more prevalent as the economy contracts.
By ensuring that people who will be dissatisfied by their position in society are removed from it (or to be precise, remove themselves from it with minimal effect), the system remains stable. If they do not do this, and refuse to settle for a life of poverty and abject waste of their innate abilities, they begin to act in ways that damage the stability of the society responsible for failing them (gangs, random violence, etc.).
Of course, the people who are killing themselves aren't typically the people who would do the former, so the society also selects for those who would do it harm. But that's fine, because when they act outside of the law society "becomes" justified in killing them; so in effect those who choose to kill themselves are just accepting their society's sentence of death in advance.