Good Dhruv,
The team has decided on studying drop out rates, reasons, and build a model about this. So they asked us to collect data through all means possible. I got one from google plus so far. That is a government report of 2005, which merely claims drop out rates are coming down and will reach 0 in the next year in primary school. It did not indicate reasons. It shows that most students drop out in secondary / higher secondary education level. Again there is no granularity where this happens in the higher secondary.
The article you point out to suggests punishment and declaring students are incapable could account for a major source of disappointment and hence decision to drop out. Thinking of cellular automata, if we have a simple statistical measure of drop outs and make this one of the teacher's metric, they may be keen to keep drop outs low do whatever it takes.