I have issues with reservations, but the lack of performance in science isnt only because of that. 50% is still merit. Where is that merit going? I can understand if the 50% excel and the remaining 50% suck, but that is not the case. Almost everybody sucks, and those that dont, leave due to lack of options or facities or both. The system doesnt work too well! It doesnt encourage work in fundamental research, due to the lack of jobs in the sector. Even in engineering, most engineers become IT professionals after graduation, or MBAs. Both are royal wastes of an engineering degree. Both are lucrative. Look, ppl need 2 things in a job: excitement and money, and the sum of the two, in most jobs is a constant. (In a very, very few jobs can you have both in high doses). So, ppl make their choices... The excitement type will probably seek higher degrees, most of them, abroad. or curb their enthusiasm and work in a mundane job that pays them royally...
India has neglected higher education for a long time, I guess since the late 80's. I think Rajiv Gandhi tried a push for a while, but since then, there's been very little investment on higher education. Yes, India has her priorities in terms of literacy, but it cant be either-or...