But you just can't compare private company salaries with government salaries. The perks that are enjoyed by government employees far outweighs that enjoyed by private employees. You might be tempted to think that private employees get "x" times more than government employees and they should be better. But that is not how it works in India. If you are a private employee there is a possibility of getting fired. If you are fired, getting a job again is akin to going through hell. If you have a home loan from a bank you are doomed.
Government employees in India are the blessed lot. They of course have lesser salary but the perks they enjoy more than make up for it. They get free housing for life, pension after retirement, free insurance, they can purchase land at extremely subsidized rates (which for a private employee would be his entire life savings). You just can't compare salaries. Especially in a country like India.
EDIT: Not to mention: If you are a government employee your social life is set. You can easily get married (not easy for a private employee. You have to be in a top MNC and earning a big salary or have a graduate degree from a top-tier university in India). Your entire family is covered by Government insurance for lifetime (which for a private employee ends as soon as his employment terminates). In some cases, your next kith and kin are guaranteed a government job in case you pass away prematurely.
Also, a Government job is the most sought after in India. There is major competition to get a government job (I have even heard of cases where people bribed officials to get the job). Private employees on the other hand demand greater salaries just to be on par with government employees (whose salary + perks are far greater than private employees salary). Apart from that, a Government employee cannot be prematurely terminated (even if s/he is lazy) unless s/he has committed a grave crime.