Following Surveys and Reports suggests that less than 30% Engineering Passout land a Job offer or get Recruited.

1. http://dazeinfo.com/2014/10/28/1-5-million-engineering-pass-outs-india-every-year-fewer-getting-hired-trends/
2. http://www.wsj.com/articles/SB10001424052748703515504576142092863219826
3. http://www.neoncarrot.co.uk/h_aboutindia/india_economy_stats.html
4. http://www.thehindu.com/features/education/careers/just-three-per-cent-engineers-are-jobready/article2987626.ece

And this 30% I am talking about total people got Jobs. Only less than 3% of people getting the work in the Industries they has studied for. 

Colleges take Admission of the students on lower percentage and score as well. There are Exams IIT-JEE and AIEEE which are applicable to IITs and NITs. After this there are State Sponsored Engineering Colleges. Some of the Engineering Branches do not get seek any placement of recruitment activities from Companies provided there are not simply enough Job Openings. 

There are about 10-15 Companies who recruit in Mass like TCS, HCL, Infosys. They recruit the freshers and train them 6 months or 1 year. In total they all can provide far less than 1 lacs of job opening in a year. What about rest, some of them join placed far below their standard like a BPO or KPO for example or start teaching in Schools. This creates another problem, people who have done MSc and BSc should be teaching there, this situation creates the problem for people of other categories as well.

There is no regulation of Quality of Education in these Engineering Colleges. They just open run for 2-3 years and then close by. And some other person takes a permission of new college and opens it somewhere else. The One course duration of engineering is 4 years, however the college is closed within 3 years, these students are then shifted to some other college, which further disrupts their studies. Those who pass out and are not able to get a Good Job joins as a Lecturer in these private colleges which further decreases the quality of education. 

In most cases the College Management is focused on taking new admissions ans starting new branches. The final year students are left on their own.

Banks give them a loan to study which has to be re-payed and the interest of such loans is higher than of Home loan and automobile loan (simply say car loan).

As soon as the students complete the engineering he as to worry about the loan and how to pay it back. The situation is becoming very messy day by day.  

To improve all this even in small proportion is not easy the first step can be stop giving licencees to the new Engineering colleges. It was stopped some year ago but again started. Instead of New colleges the focus should be giving quality education and how better Engineers can be produced in India on a large scale (IITs and NITs can help in this as they already produce some good quality Engineers). In the time of modern technology Each Engineering college can get the the same level of information and knowledge from the same teacher as in IITs. 

This step will enforce these engineering colleges to push their limits an be better in some or the another way. Even though some colleges will still close and that is okay. We do not need all of them, those who give quality will survive.