This link on India's top "biotech" schools was recently sent to me by a friend. Amongst other things, it stated that my old alma mater, Anna University's Industrial Biotechnology program was ranked second in India. Yeehaw and good for me. However, that being said, I do believe that almost all these schools still have a lot to be desired.
The areas they lack most in are (1) Infrastructure (2) faculty and faculty encouragement (3) opportunities for research and (4) sufficient exposure to the various areas of research in the field. It has to be remembered that this is an extremely expensive field since it involves costly equipment, reagents, media and cell culture facilities. Computational biology/informatics is just one small area in this field (though Indian media goes gaga over it), and even in this area (India's strength) the infrastructure is poor (with student:computer rations in the range of 20:1 or something like that). And an even greater absence of dedicated clusters/servers for this purpose. In addition, a majority of the faculty members sink into a comfort zone with their positions, and there is insufficient incentive for them (and a shortage of funds) to pursue meaningful research, or publish their work. Most students are also not seriously encouraged to take up higher impact projects, but can "wing" their way through a thesis. Finally, the industry-academia interaction (atleast in most schools) is very limited, with only limited opportunities for long internships or research projects in R&D labs.
As far as research goes, only a few premier Institutes in India (IISc, NCBS, TIFR to name a few) carry out world class research in the biological sciences. Small innovative biotech companies are yet to come up, and most larger pharma companies are only slowly emerging out of their "reverse engineering/process patent" mindset. Their investments in R&D remain stunningly low, and students have little opportunity to make use of industry resources or facilities.
So, there's still a long way to go before "biotech" education in India becomes truely competitive.