I'm currently studying in an IIT.
Most of your perceptions are very wrong. This ToI fueled hatred towards the IITs needs to be addressed. I doubt I'll be able to change your minds but here goes.
Most IITians go abroad: This is so incorrect it isn't even funny. Under 5% of a graduating batch gets silicon valley or other foreign offers. Another 5% or so pursue PhDs abroad because they are inclined towards research. I'd say at the most another 10% go on to pursue their masters. Meaning only about 20-25% of IITians go abroad! I will concede that the absolute brightest IITians do go abroad, but that doesn't mean every single IITian goes abroad as is portrayed in the media.
IITians do not do research: On the contrary, you will find it hard to find a single IITian who hasn't done a single research project. Graduating Bachelor and Masters projects in the IITs are usually of very good quality. I've undertaken two research projects so far, have been published twice, both times in High Impact Factor Journals and I am about to embark on a year long funded project with very practical applications.
IITians prefer to get an MBA and/or enter finance: This is true to some extent, only for branches such as Materials Science and Chemical Engineering, because job opportunities in these fields often involve not very high pays and postings in distant areas. The government needs to encourage investment in these areas and invite foreign cos to set up R&D facilities like there are in CS/EE or Mechanical Engineering.
IITians contribute very little to the Indian economy: On the contrary, look at even the youngest startups from the IITs and you will see the sheer number of Jobs they generate. Forget the likes of Flipkart or Ola. Zomato is currently present in 19 countries. Housing.com is expanding at a dizzying rate. These companies bring in investments, genreate jobs at every skill level.
Feel free to ask about anything concerning the current ground realities at IITs. And FYI, the current fees for a student entering is closer to Rs. 1,50,000 per year. I agree there are government subsidies to our education, but not even 10% of the batch will be able to afford Rs. 3,50,000 a year (if that is really how much it costs. I doubt it).