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It is rare for the tier 2 graduate to make it into tier 1, but if they do they are super exceptional and stand out.

Is this wrt USA? In India its not particularly a rule.

Yes, from the perspective of someone who works at an Ivy. Not so much as the people are biased but as how the competition is so very fierce.

I’ve got no idea of how it is in India.

Ah, India, the average undergrad there is in top 20% worldwide

source: my experience.