As a technical point: there is an even better school located, I believe, in Mumbai, that is private and I think graduate level only -- I can't recall the name. One of the guys I know out here in the US (who has a fancy tech job these days) did his CS undergrad at IIT...
another factor is the end result of those hard years; for Europeans in particular, I have read that post-graduate success has more to do with socio-economic status than academic performance, so why kill yourself studying? 2) I find it increasingly ironic that, as the American economy become...