I've heard from Indian students at my university that grade screening in ridiculous in India, is that true? When applying coop employment here in North America many of them are shocked that so many companies don't have a minimum gpa cutoff and even the companies that require a minimum GPA to consider you have a reasonably bar 3-3.3 at worst. I've heard stories about people needing to get straight As or some ridiculous benchmark like that in India. Sounds like a toxic environment for the student, no wonder there are so few startups coming out of there despite a booming IT industry. What college kid would spend their time on a side project when they are being held to such ridiculously high academic standard.
Yes this is applied by some companies in India, however the reasoning behind it needs some explanation. Personally in my college there were around 350 CSE and IT students. The top companies(in India) say your Amazon, MS and Google have a lengthy interview procedure and cannot possibly go through this will all the students. So they screen grades.Note that, this happens typically only in the second tier instituions and not the premier institutions which do not have the problem of a huge student strength. For this reason typically students from other majors(electrical,chemical etc.) are also not allowed to sit for programming interviews.
Sadly many students will ask - "give my code away? For free!?"
This will also probably lead to "Heck, the code is free, let me copy it."
Also on the point of getting interviewed - most companies just want someone who can learn, and has good enough grades and a workable grasp of English.
Once you pass the tests, you are sent to their training centers where they will teach you whatever skills you required. The Tata training campus and is course is considered to be the equivalent of a 2 year Comp Sci. education in India.
Having a good grasp of code, is not necessarily an asset to get you into those jobs.If you want to strike out on your own and jump ahead of the curve, then I can see the merits of the suggestion.
Effectively for an undergrad 2 things matter - Your grades and your pedigree (IIT, Engineering students are the most valuable, and this combines with the reputation of institution. Commerce students are next in line, and arts students last.)
Basically these are proxies for ability discovery. Its pretty brutal.