I am in USA now for PhD and did masters in IISc ,Bangalore last yr.I think the present trend is only due to increasing number of software companies,like those who dont mind doing any job (like I have see people from metallurgy,chemical engg...going for software jobs)are not even trying GRE,TOEFL and good softaware companies apys well too,but however everybody dont like software and they stick to their own stream and try for higher studies. Well it is a waste of knowledge gain to join software when you complete studies in mechanical engg but then students should go in every direction according to their own taste and decision,otherwise it will be more difficult in a highly populated country.