The result being that a host of colleges have sprung up to meet this demand. These colleges are setup with the sole aim of making money. Education is just a side effect. Students get no academic freedom and have no space to learn outside of a very narrowly defined "syllabus".
The worse problem is that most students who end up in Engineering Colleges have absolutely no interest in becoming engineers. They do manage to somehow graduate and get an "IT job". They end up being mediocre engineers and at the earliest opportunity try to find a way out. These poor souls end up giving a bad name to Indian Engineers.
What about those who want to be engineers because they like to build things and love to tinker around? The hacker types? Getting into an engineering college requires a lot of money. If and when they do get into an engineering college it's a poor quality one. They are forced to spend time only on mugging up equations and theorems. They get no space to build circuits of their own or blow up stuff for the heck of it. Assignments are a joke, they require no application of thought and all that's required is merely copying stuff from the text book onto paper. The poor dispirted hackers end up languishing in low paying jobs or find an escape route by moving out of the country where their talents are recognised.
tl;dr : Quality suffers when quantity increases beyond limit.