I agree. It's hard to see the usefullness of a degree in a poor 3rd world country if you wasn't born in one. Nowadays it's possible to be an entrepeneur with somebody elses money, the internet, kickstater and the apple app-store, but all those things are unavailable in india.

In a huge 3rd world country, a degree is obviously useful. It's a gov-issued certification, a way to transfer trust from the person having the degree to the government. You don't need to trust the guy because the government says he can code. If you don't see why that's useful probably you never had 10000 applications sent to you.

The problem with degree inflation is the same as any other kind of inflation, it lowers (devaluates?) the value of the degree.