A few Indian schools in top tier, such as the elite Indian Institutes of Technology (IITs), can be reasonably compared to world-class schools, but the American investors and businesses have finally learned the hard way that there is huge gap between the few tier one schools and the tier two and three in India. The quality of education most Indians receive at tier 2 and 3 schools is far below any acceptable quality

Looking at the top 500 universities in the world, One can see a few universities from India and a few more from Muslim nations such as Malaysia, Indonesia, Turkey, Iran and Pakistan. Many new world-class universities are now being built in several Muslim nations in Asia and the Middle East, and they are attracting top talent from around the world.

A survey of human resource professionals at multinational corporations in India revealed that only one quarter of engineering graduates with a suitable degree could be employed irrespective of demand (Farrell et al., 2005). Another survey of employers shows that only a handful of the 1400 engineering schools in India are recognized as providing world-class education with graduates worthy of consideration for employment (Globalization of Engineering Services, 2006). These results suggest that engineering degrees from most Indian colleges do not provide signaling value in the engineering labor market. Hence, low quality (in the labor market sense) engineering schooling has come to predominate in the education market. The current situation, with an abundance of low quality engineering schooling, is considered objectionable by many in the Indian polity and is also projected to stifle growth of the Indian economy (Globalization of Engineering Services,
2006).

Here's an anecdotal assessment of the quality of Indian graduates by an India I saw recently on Chowk.com:

I don't think all university graduates are conversant with English( though it is not immaterial)...At least my sister and so many others from West Bengal (MA degree with decent knowledge about the subject)...
15%-20% graduates from India are good enough...
From my own experience and campus recruitment, I am engaged in, the fresh Engineering Graguates even in Computer Science are not employable...They lack something, which is required for the industry....For example, you ask people about sorting algorithms, everyone stops at quick sort, though the book and syllabus covers everything...
90% of the people do not know, application of signly linked list and where it should be preferred...what about B+ tree?...basics of file system...basics of memory management...It is not that rosy, the way some people in USA tries to project...but the basic advantage, we had is, we know we are from disadvantaged section and most of the people are too concerned on job related stuff....that makes people in India faster learner (specialy girls)....And you are correct; even with 20% employable graduate, India should be able to challenge the intellectual supremacy of USA....So are Chinese people....but not in near future ( 10/15 years)

In terms of the quality of secondary and tertiary education, India also ranks low among the emerging economies, according to a study published in Silicon India. The drought of education in India has reached the extreme as it ranks sixth among the seven emerging economies of the world, in terms of education quality. The country has scored only 3.3 points in the study, in terms of primary, secondary, tertiary and demographic parameters, while Russia topped the chart with 7.3 points.

As per the Assocham study, India was at the last position in terms of quality of secondary education while Russia and Brazil had maximum scores. The quality of tertiary education in India was lowest among the other emerging nations. The points it scored on the scale of 2, was 0.1. Even though the demographics of India are considered its strength, the country has scored the minimum in this too and was ranked at last place. Moreover, in terms of students enrollment for primary education, India is highly incompetitive with the gross enrollment ratio standing at 98.1.

"Serious attention needs to be paid towards the education system. India may stand to loose its competitive advantages against the other countries in long term if corrective measures are not taken to strengthen the Indian education system qualitatively," said Sajjan Jindal, ASSOCHAM President while releasing the ASSOCHAM Eco Pulse (AEP) Study 'Comparative Study of Emerging Economies on Quality of Education'. It was carried out on the basis of 20 parameters relating to primary, secondary, tertiary education and higher education and demography and data provided by UNESCO, IMF, WEF, Financial Times was used for the purpose.

Among the rest five countries, China has secured second place with scoring 6.7 points, while Brazil has positioned itself at third place with 5.56 score points as the quality of education in Brazil remains stable across all levels of primary, secondary and higher education. Mexico has been ranked at fourth place on the strength of its higher education. South Africa, a relatively new entrant to the club of developing economies, has managed to be on fifth place on the strength of its tertiary education and demographic qualities though it lags far behind in primary education. However, Indonesia stands at the last position with an overall score of 2.68 points. The gross enrollment ratio is highest in Brazil (148.5), followed by China (116.2) and Russia (113.8). Even Indonesia (110.9) and South Africa (105.1) enjoy better enrolment ratio than India.

However, only in terms of teacher-student ratio the country outsmarts all as in India for every forty students, there is one teacher.

Are the harsh judgments of Pakistan's higher education quality justified? Especially, when compared with other mainstream institutions in the region? You be the judge.