Why convert everything to rat race?

Instead of having cut off marks based on students scoring, we can have minimum high pass marks that check if the student has enough knowledge to study medical including checking the projects they have done (it checks whether the student is exceptionally excellent for the work). Then lottery system can be done if we have a fewer number of seats.

The proposal can also include girls and other vulnerable social class under reservation.

This will reduce the too much of unnecessary burden on the student, also they needn't have to join coaching centers for getting the seats. No more sky touching marks, and no more importance of special coaching.

Scientifically speaking luck do play a role in the entrance exam, it's not all about merit. 
How luck plays the role?
Students who score 2000 rank is not necessarily better than 3000 rank.
Parents can't afford the coaching institute.
Not knowing the pattern of exams, such as e.g. following Campbell book instead of NCERT, even though you might be knowing more, as all questions will come from NCERT, you will score less.
The student can have genetically less memory, as questions can be memory based. But the real importance is processing and analysis rather than memory based instant recall answers.

Having the lottery system eliminates all these kinds of faulty bothering fortune, and also reduce the student's psychological burden.

A detailed similar proposal is written in the context of limited research funding:
Research Funding: the Case for a Modified Lottery

Other problems of Entrance exams:

Effect of entrance exams on noncompetitive students.

Coaching centers and colleges don't provide personalized support to the students who get failed in regular tests. With the craze for medical and IITs, students who can't even do simple unit conversation, and don't read even an hour without teacher support, join the coaching centers in a hope to get IITs or medical. Such students are eliminated and neglected by coaching centers and colleges, as their goal is outcome i.e. to get as many IITs and Medical students. The present craze and model for preparation of entrances, whether its IITs, Medical or IAS, is causing a disastrous impact on uncompetitive students, who are the majority. As 1-2% of students preparing for entrance qualify it.   

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