effects of recession or something more ?

Why do we never hear a news of job market being good

Remember...there is a quota also in IIT

Effects of reservation *

At least in computer science, the syllabus hasn't been properly updated in almost 2 decades. It's true, recession is there, but even though jobs are there, we don't have enough people who are skilled enough.

For the syllabus part, look at the proposed new CSE syllabus from IITB. https://www.cse.iitb.ac.in/infoczar/lib/exe/fetch.php?media=public:dugc:ugcurriculum08.pdf

None of the textbooks are newer than 2010. For beginners they still use K&R C (1988) as reference text, which doesn't even compile in today's compilers. And they call it "modern"!

In their Artificial Intelligence course, the texts are from pre-2000. A lot has changed since then. There are better revised editions of the books.

UML and XML which are becoming rare in today's world are categorised under Database and Information Systems. XML makes sense as a carrier data format, why is UML under this category?

Students need to be introduced to API design much before teaching them distributed systems. Also distributed systems texts again are from 90s where things changed drastically.

Only proper core subjects are Data Structures and Algorithms, Principles of Logic and Design, Computer Architecture (not for everyone, only relevant for some roles today) and Operating Systems.

I'm not an expert, but this shows that there is a huge gap between academics and business needs.

its the quality of education now a days !!! no graduate can get job if you observe , thats why very less freshers are getting hired