key flaw in current IIT undergraduate selection process.

No doubt that there are some really breathtaking success stories in the air since past few years but as they say that success always deter innovation and new ways.i feel the same has happened to this system as well,the whole IIT system is quite rigid and stern always forbidding new ideas to flourish.All in all almost 3500 students enter every year into IIT"s through iit-jee out of which only top 500 students are able to pursue what they exactly want and rest of them fiddle around with other streams.Moreover there are just over 200 seats of the current hot "computer science and engineering" including all the IIT"s , compare it with other feudal branches (like civil engg,chemical engg) which are almost more than 2.5 times than the current demanding ones.Now as a consequence , almost 90% of the students of these conventional streams migrate to software industry,finance ,consultancy for lucrative packages leaving behind their core field in dust.
All this happens just because of imbalance of no. of seats with raising demand ruining all the core knowledge and technicality they have gotten at IIT"s.These days IIT"s are more or less playing the role of B-schools with almost 70% of their students accepting non engineering jobs which is not the way they are supposed to be, hence creating a void of skilled engineers in the Indian industry.