Why, in the Indian education system, is more emphasis given on writing theories, scoring marks and solving numericals (especially in engineering) than to approach (of student to tackle problems) concepts and most importantly applications?

Because the students who are interested in solving "real-world" problems go to work for great companies like Google and Facebook. They don't become teachers because it is not glamorous. Why don't you stop complaining and take up a teaching job and show us how it is done? We will follow you. I promise.

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