On behalf of ACM India, I conducted the first survey on PhD production in Computer Science in India. The report has been published and can be found, along with the background, here.
As the report clearly shows, while the number is not as low as one thought, it is still about 125. And if you consider PhDs from only the top 20 institutions in the country, the number is in two digits. And the projections are that this number will only double in about 5 years.
This study actually highlights the tremendous opportunity for those who are doing PhD in CS in India. Academics is growing rapidly with so many new IITs, IIITs, and other Institutes coming up. Even if you consider each such Institute will need about 5 faculty members each year, 50 upcoming Institutes can easily consume 250 PhDs. Then there are at least 20 research labs in many software companies, including the large software companies which seem keen to expand their R&D capabilities rapidly, and various other companies that can consume PhDs. Overall, the private sector can also consume about 250 PhDs per year. There are other opportunities in Govt sector also. In a nutshell, the supply is significantly lesser than the demand. And this gap is likely to increase as demand is set to increase.
Due to this mismatch in demand and supply, and the growth of academics, the compensation for fresh PhDs is now very good. Companies will often pay a package starting from Rs 15 Lac to Rs 25 Lac or more for a fresh PhD. Academic packages are also quite good after the sixth pay commission – an Asst Prof can have a yearly compensation of Rs 8 to Rs 12 Lac. Compare this with the starting package for software jobs – except for a few multinationals, the starting package tends to be around Rs 3.5 Lac for the large and medium sized software houses (which is where 90% of the software jobs are), and Rs 4 to 6 for the niche players. Even if one counts for the 4 to 5 years that one has to spend in getting a PhD, compensation wise, a student who does a PhD will clearly come out ahead.
And then there are the really strong benefits of doing a PhD – the main reasons why people preferred this route even when the compensation was not good. And that is, the freedom to explore and chose your own work agenda, the non-repetitive and challenging nature of work, the culture of R&D, lack of hierarchy, being a member of the global community of researchers, etc.
Overall, while the PhD production report does not have too much good news for those who want to recruit PhDs, it is good news for those who are considering doing PhD.