India's Skill Famine?

From The New Yorker:

India has run into a surprising hitch on its way to superpower status: its inexhaustible supply of workers is becoming exhausted.

How is this possible in a country that every year produces two and a half million college graduates and 400,000 engineers? Start with the fact that just 10% of Indians get any kind of post-secondary education, compared with 50% who do in the U.S. Moreover, of that 10%, the vast majority go to one of India’s 17,000 colleges, many of which are closer to community colleges than to four-year institutions.

India does have more than 300 universities, but a recent survey by the London Times Higher Education Supplement put only 2 of them among the top 100 in the world. Many Indian graduates therefore enter the workforce with a low level of skills.

A study at Duke University found that if you define “engineer” by U.S. standards, India produces just 170,000 engineers a year, not 400,000. Infosys says that, of 1.3 million applicants for jobs last year, it found only 2% acceptable.