As a software engineer myself, here are my thoughts. All major mass recruiters in India are IT Outsourcing companies. TCS, Infosys, Mphasis, Accenture, HCL, Capgemini and more are the major recruiters in non premier institutes. Even for IITs, the top recruiters are software giants like Google, Microsoft, Adobe, HPE etc. So yes, there is a huge demand for software engineers.
Hardware developers or more specifically, Embedded and VLSI engineers have plush jobs but ONLY once they are able to get into the industry which is possible only after a lot of hard work or a degree from a premier institute.
However, I don't personally like your question. A person should do what they like and excel in that rather than looking at what is more demand in the market and getting into a profession they are not interested in.