(Giving some context into this as founder in edtech -- running a 4 yr CS undergraduate program at kalvium.com)

One reason for grade inflation is that this is currently the only filter provided to the industry, who would like to filter students they review. This has ended up as a perverse incentive, and students and the university want to be above the "cutoff" GPA.

One of the solutions we're going with is to provide a 5 point grade per course, and provide this full breadth of data as a filter to the industry during the placements/internships season. Our bet is that the industry will have more diverse options to go by and we end up with better match-making.

Another solution is to have publicly verifiable artifacts of coursework (plagiarism is a significant problem in higher education).

I'd also like to hear HN's recommendations on this topic.