Business Standard presents two views. The first is from Gautam Ahuja (Ross School of Business, UMichigan). While he presents a comparison which makes IIM salaries look bad, he also makes the point that the "performance parameters" ... "are a lot less stringent" in India.
A fresh assistant professor joining a top-25 US business school would receive a pre-tax salary of about $135,000-$170,000 (Rs 67-85 lakh) plus pension and healthcare — there is no subsidised housing. There are variations within this: Finance faculty are paid more and private schools will pay on the higher end of this band. Against this, the faculty are generally expected to teach 100-150 hours per academic year. They are, however, expected to publish in the top-tier academic journals which have very high rejection rates — failure to meet these publishing standards usually implies that once your probationary period of 5-7 years is over, you are forced to leave the institution (a fairly common occurrence at the top schools). [Bold emphasis added]
The second participant in the debate is Dinesh Mohan (IIT-D):
As for comparisons with overseas engineering institutes, it’s not as though a teacher in a western university is paid industrial salaries. Most American or European elite universities, public or private, pay public-sector salaries prevailing in each country to their engineering faculty. We should also not be comparing our salaries with a few BTechs or MBAs who get high-paying jobs. We can compare our salaries only with fresh PhDs in engineering who get a permanent research job including housing. Then we’ll find that we are not so badly off.