The question refers to engineering education. The Hindu has the answer. Among other things, it cites these numbers, which are truly mind-boggling.
The increase in intake capacity in engineering degree of some of the States from 1990-91 to 2003-04: Andhra Pradesh 8,070 to 66,205; Karnataka 19,452 to 40,920; Kerala 4,512 to 19,868; Madhya Pradesh 2,265 to 15,920; Maharashtra 20,425 to 47,450; Tamil Nadu 12,855 to 79,302; Uttar Pradesh 3,029 to 24,773; West Bengal 2,022 to 13,269; Delhi 1,290 to 3,800; Gujarat 2,780 to 10,325; Haryana 1,085 to 10,105; Jammu and Kashmir 480 to 970; Orissa 1,325 to 10,695; Punjab 1,508 to 10,701; and Rajasthan 1,629 to 10,785.
The total intake in all the States put together went up from 87,221 to 3,83,912
The article goes on to identify several problems that arise due to such a large number of institutions. Finding good teachers, for example. The situation is so dire that there are institutions where graduating students are recruited to teach their juniors! Many colleges' websites do not even bother to list their faculty members' names or qualifications and other credentials (for example, this deemed university; I checked three departments at random, and none of them had a faculty listing).
AICTE, which was "established for proper planning & co-ordinated development of technical education system throughout the country", has National Board of Accreditation meant for certifying that insitutions meet certain minimum standards. If we go by the Hindu article, we are better off with regulations suggested by Satya. These regulations would mandate that institutes (a) disclose to the public all relevant information, and (b) get themselves rated by independent bodies such as CRISIL. We have noted earlier that Pankaj Jalote, professor of computer science at IIT-Kanpur, has also written about the need for such reforms.