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Is the Indian Education System Collapsing?

Over the past 5 years or so, around 40% seats in engineering colleges have remained unoccupied.  In 2016-17, of the 1,38,000 seats in engineering colleges, despite heavy cuts in the number of seats, over 56,000, that is, 41%  saw no takers. Many analysts believe that this situation is indeed a grim indication of the end of the last obscure vestige of Indian Education System.
In Maharashtra, the demand for technical courses that include engineering, diploma, pharmacy and architecture among others, has remained disfavoured across the whole state. It recorded a vacancy of more than 44% in technical courses in 2017. Of this, diploma remained the least opted course – less than half of the 1,42,000 seats were occupied. Vacancy conditions in private and unaided engineering colleges across the state are more sickening. The number of students seeking admission to engineering courses continues to decrease which reveals the diminishing motivation levels among engineering aspirants.
In view of vacancies in existing engineering colleges and polytechnic institutes, the state government has requested the AICTE not to approve new colleges this year.
In Orissa, citing the same reason (rising number of vacant seats in engineering colleges), private engineering college managements have been pressing the state government for permission to conduct entrance examination on their own to management seats.
Finally, Dr Anil Sahasrabudhe, the chief of All-India Council for Technical Education (AICTE), under whose approval the engineering colleges exist, has stated the obvious. His concerns can be, in fact, construed as statements of AICTE's failures. He recently told media his observations:

-students start developing an inferiority complex and a positive intervention for these students is necessary in the first few weeks so that they don’t feel left out.
-respect for each other’s views is missing
-no initial camaraderie and respect between students,
-students don't allow each other to have different views and do not co-exist in peace
-a lot of unrest and clashes among students. Dr Anil Sahasrabudhe did not use the word ‘bullying’.
-no interaction between teachers and students, to enable healthy exchange of ideas between the two
-no level playing field and that’s what these orientation workshops would do.
There can not be a better definition of 'collapse' as described here and observed by none other than
Dr Anil Sahasrabudhe.
The reasons for all these ills, as elaborated further by the AICTE chief are:

-The current engineering syllabus has become very old. That’s why changes have been made in the syllabus.
-The students come from diverse backgrounds; many of them come from rural areas and may not be well-versed in English, even though they are bright students.
So, as a remedy, Dr Anil Sahasrabudhe and his team decided to introduce a new syllabus thereby effectively rendering the earlier procedures ridiculous. (Read : New curriculum)

But, as is evident, his approach to the solution is sickeningly misplaced. The cause and effect analysis is appallingly wide of the mark. While the present state of affairs clearly proves that education system has failed miserably, Dr Anil Sahasrabudhe should first own the responsibility. He should then describe what he means by ‘level playing field’, ‘camaraderie’. Can he explain how it would be possibly logical for any two such students to stay friends in a classroom: one who has been scoring less than 50% grades and getting selected everywhere and one who has been scoring more than 70% grades and getting overlooked?

Now, when the studies of Vedas and the Indian Constitution will commence, then both the students and the college staff will gain more insights into attributes of the reservation system, hopefully. 
Dr Anil Sahasrabudhe knows very well that when merit is compromised in the pretext of reservations, which is presently 50%, even God can't help anybody getting tuned to the needs of the industry, society and the Nation.