Yep! The University of Waterloo back in Ontario did the same thing in the 1960s, which helped catapult the program into a Tier 1 CSE program comparable to older more established programs like UToronto and UMich.
> Lot of the startups (even YC ones!) by IIT students actually involved one of their professors in the ideation stage, and they even have equity % sometimes
Yep! There are also some NIT, BITS Pilani, IIT, and other program specific networks made by their alumnis in academia and VC. I think Foundation Capital (Netflix, Cerebras, Fortanix) is running one such program.
> It is true that the govt institutions themselves have less IIT representation, mostly due to low salaries
Ministry affiliated universities are a major reason why. For example, ISRO overwhelmingly recruits from IIST, ONGC from IIPE, and other SOEs or R&D programs will recruit from universities specialized in that specific disciple instead of an IIT or NIT now.
Ooh, didn't know that. Interesting.
It is true that the govt institutions themselves have less IIT representation, mostly due to low salaries. However, what matters to the private sector is sources of capital. Tech investors in india usually went to IITs themselves, and so the ecosystem always remains close to IITs, allowing professors easy access. Lot of the startups (even YC ones!) by IIT students actually involved one of their professors in the ideation stage, and they even have equity % sometimes. Similar to Rajeev Motwani holding a stake in Google, they get really rich sometimes.