There are no Indian universities in the top 200 universities according to the QS World Universities rankings. There are only 3 in the top 300! While I don't know if this is an institutional deficiency(lack of research, distinguished professors) or a lack of quality among students, one thing is for sure and that is Indian degrees are not very respected worldwide aside from possibly Indian Institute of Technology.
From what my father tells me, the K-12 education system is also broken. The public education system is considered a joke in India to the point that anyone who can enrolls their kids into private schools as soon as possible. Most students who pass India's rigorous college entrance exam take extensive coaching(as my cousins have), and this results in a system of college acceptance being determined by wealth.
The thing is, I can't see change coming. India has yet to address nationwide corruption that cripples the whole country!