A small percentage of Indians fall into the higher income group while the majority continue to languish in poverty without even the hope of a squared meal the next day. One of most easiest way to jump from a disadvantaged background to the higher income group is an engineering degree in India. Parents want their kids to become engineers, doctors and chartered accountants not because they think their kids love these professions but rather because it gives them a ticket of sorts to ensure a safe financial future. The parents aren't completely wrong as they themselves have spent an entire generation struggling through the ranks to raise their children. They dream of a better future for their kids than the ones they had. Once this realization set in, mass engineering enrollments took place. To supplement these mass enrollments, engineering universities were spawned which produced engineers like a factory. Alas the break even point has come - the market can only support so much engineering graduates. The over reliance of the market on service based jobs coupled with the thought process which links an engineering degree to a better quality life has led to the current state. Yes, things are changing - I know of two best companies in the world who have set up their research labs in India in the last 12 months but the change is too slow for the supply. Something will give in, one point or the other.