Shortage of people in over-populated India?

I would say 'IT' in India is a job spinner. I remember my days 14 years back when i was really slogging to get admission into one of the major engineering institutions (the IITs) . That was real hard work -- 16 hours put in every day continuously. The carrot was -- if i get into an IIT i will get a job for sure and if i don't i might have to really struggle. IIT entrance exam was a tough one where we had around 0.2 million students competing for around 2000 odd seats.

That was then.

Now, with the IT industry roping in engineering graduates from across India (and the world), the jobs are aplenty. Almost, all engineering colleges across India have campus selections in the IT industry. So, it easy guys. No more 'burning the midnight lamp'. Just chill. And note that the campus selections are rising by the day and students are booked when they have just completed 50% of their course i.e. 2 years of their study. Which also means 2 years in advance. In my days, even in the IITs, campus placements were not always 100%. But now all engineering colleges have excellent campus placements. Leave engineering grads, all grads are having a great time -- thanks to ITeS (IT enabled services) i.e. call centers and BPOs.

So, IT is a real job spinner. And, in fact, it looks quite strange that we are soon going to reach a stage wherein we will say that there is dearth of people (IT-able people) in the 2nd most populated country of the world (or has it become the most populated now)?