Professors at IITs have decided to go on hunger strike, demanding more money. Professors at IITs make anywhere between 40k a month to 75k a month (the most senior of the lot). That's clearly a pittance - grad students in the US make the same amount (if one were to convert directly).
But a good way to compare pay is dividing the rupee amount by 10 rather than 50, for purhcasing power parity. (This is not perfect, because though a $2.00 loaf of bread in the US would cost Rs 20 in India, a $150 TV would cost closer to Rs 10k than Rs. 1500.). But dividing by 10 would be a good rule of thumb.
5 lakhs thus works out to $50k a year. Since assistant professors in the US earn about $70k, there might be some sense in asking for a 40% raise. But IIT professors get subsidized housing in probably the best area of the city - and some other perks. The money value of the subsidy will also have to be considered.
The problem with IITs is that they are run by the government. There are no nobel laureates at IITs. There is scanty industry sponsored research. There is no real incentive to work with the industry back there. Perhaps adopting an American (captialist) model of paying oneself from one's own research funds during summer could prove to be of value.
And in other news today, people have shown that a heat cannot travel from cold to hot areas; eggs don't unscramble and go back into their shell. Evolution is not reversible.