Yes it does. Not because it takes away from the exclusivity, but because it is hard to find good faculty even for older IITs. Newer IITs are really struggling to get reasonable faculty. So, students in newer IITs are not getting the education that they are supposed to get from an IIT.
I like to blog about various topics ranging from education in IITs to social issues in India and US. All opinions and views presented here are my own and not of my employer.