Yah, its very imp for a country like India with a population of 1 Billion to have at least some world class educational & research institutes, specially when India is emerging as a World power, which she deserves.
Not only, we need to increase IITs but also we need to pay attention towards quality & quantity of research. Dr. Murali Manohar Joshi was right when he was thinking to convert existing IITs into research institutes only like IISc, & all to shift all the undergraduate programs to NITs (erstwhile RECs).
Yah, there can be some problem & resistance while implementing his vision, but if it is done with determination then its not difficult. may be, we dont see any benefit in near future, but we'll definitely in a much better position after say 5-10 years hence.