thats an obvious answer, I am doing my masters here in the US, did my BE from univ of Pune, there are very few IIT seats, that does not mean there are very few engineers capable of IIT standards. Not only that, India has yet to establish itself as a good academic institution. Why do people like us come to the US. Its not just the money, its not jus about coming to the US, its about better standards too, and having more IIT's is definitely needed.
The IIT's we have right now are world class institution....more the better.