It is not all that hard to get into an IIM these days actually. IIT is definitely hard at the Undergraduate level (and harder than any US institution) primarily due to the sheer number of students trying to get in. The coursework is also pretty tough. Vinod Khosla( a co-founder of Sun Microsystems) said that after doing his undergrad in IIT Delhi, higher studies in Carnegie Mellon and Stanford were just a cakewalk.