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What we need are real universities!
What are real universities?
Research, undergraduate and post-graduate teaching, multiple disciplines.
An overwhelming number of our universities are not 'real' if you go by this definition. IITs come close, but they are more of technical universities in that they are focused on engineering disciplines and, to a lesser extent, on science. Humanities and social sciences are small, and are more of service departments (this is changing).
Most of our other 'mainstream' universities do not do undergraduate teaching. They conduct undergraduate examinations, but the teaching function itself is outsourced to their affiliated colleges.