How does IIIT Hyderabad produce so many world-class programmers every year?

I may not be the right one to answer but since my sister studied there I can provide you her experiences and suggestions about the college. 

Below are some of the major contributing factor: 

• Coding tasks + laboratory tests are the dominant part of most courses and some of them are focused totally on programming, without considering 1st-year student programming workshops. 
• However, she spent much of her first-year classes, such as drawings from four different viewpoints or on non-related activities. 
• The courses are also very theoretical in previous years. The activities of coding are completed rather than done right before the D-Day, and sometimes the submissions can be divided into equal groups by hostels. 
• IIITH has a deep culture of programming and gaming. She bets apart from quality coders, they've got some of the best & hardcore gamers in the world, but unfortunately, no one asks questions about us gamers. It's a lot more fun to code (especially debugging) in groups. 
• As a CS major you'll feel already outcast by IIT, and you don't want to be outcast among outcasts, by pretending to be a coding nerd. Most of the students here are naturally super-geniuses in overcoming algorithms, mathematics, and puzzles, but don't give a coding figure.

In the second year, ITWS or the IT workshop, requires a solid base in the first year of computer science and programming and offers an understanding of the difficulties and strengths that are to be learned in future years. You will need to develop a very complex six-month project, from a simple web platform to a courier, to build an award-winning Android app or a POS-tagger.