I ask these questions because they seem relevant in understanding the motivations of many taking the exam. Does it reflect poorly on an Indian family if a child (especially a son, I presume) does not sit for the JEE? If so, it might be socially rational for an academically mediocre child to go through the motions of test preparation. This incentive is heightened if no one would have to find out just how badly the child did on the test. Is it a source of pride or honor for a family that a child is preparing for the JEE?
If these social motivations are present, perhaps a talented student's actual chances at getting into IIT are much higher than the overall numbers suggest. I argue that admissions percentages at top-tier US schools are similarly affected. Little Sally, even after spending hours with a private SAT tutor, got only a mediocre score. Yet, her high-achieving parents demanded that she apply to Harvard, Princeton, etc. This way, they could signal to others that they deemed their child of high calibre and (the real incentive here) themselves parents so good that they want only the best for their child. Because the acceptance rates are so incredibly low, it will not be a mark against either Sally or her parents when she is rejected from all her "first choices" and ends up at a mediocre university somewhere -- her "safety school". Sally's parents might also be rational to avoid mentioning that she applied to and was rejected from a couple schools only slightly more selective than BeerCanU as these rejections would be seen by others as a legitimate measurement of their daughter's mediocrity.