This post captures very accurately the engineering education scene in India. I would add that many students today are actually aware of what they are getting into (Most of the times, they don’t need engineers but mere “coders”). Unless they are living under a rock, their predecessors have already told them that by now.
Going further the students who were pressurized to take up engineering are now using these jobs as stepping stones to reach a point where they can pursue their real interest. The good engineers are seen as capable to lead bigger teams and pressurized to enter project management (which is, in reality, resource management).
At least on the open source front, there seems to be a real community of interest in India, who seem to involved due to their love in the area. The way I see it, getting into engineering was an 'arbitrage opportunity'. That window has closed and people will slowly move on.