>This can be seen from increase in placements in IITs this year.
That's probably because they are pushed by their families, "go and study IT, this is the best paid job at the moment". That doesn't mean that the value, skills, abilities of the new graduates will increase, I tend to believe the opposite.
What do you mean by pushed by their families? You don't seem to have a good understanding of educational institutions in India. IIT entrance exams are one of the toughest exams out there. Please read this page - https://en.wikipedia.org/wiki/Joint_Entrance_Examination_–_A...
So even if families pressure their kids, they will not be able to get an admission in these institutes unless they demonstrate required skills.
That's probably because they are pushed by their families, "go and study IT, this is the best paid job at the moment". That doesn't mean that the value, skills, abilities of the new graduates will increase, I tend to believe the opposite.