This is based on my personal experience and those of a few friends at non-IIT colleges.
I know some great teachers too. But, the majority of the teachers are just wasting their time as well as those of their students. There is no love for the subject they teach.
"While I agree that a lot of educational institutes in India suffer from under-qualified or uninspired teaching - I do not believe that it is the core reason of all that is wrong with the education system."
Finding a core reason for the maladies of Indian educational system is a never-ending exercise. But, a lot of problems will be solved if we have more inspired teachers.