Is it true majority of computer science student can't code?

Yes. I can answer this in context to the Indian Engineering CS grads.

Many CS grads don't know programming in India.Why?

Because they don't want to program.Some are fine artists while the others are excellent singers.From dreaming to startups,you can find many different talents in India.But they get into CS unwillingly. Again Why?

MONEY - Everyone loves money.CS is a field which will continue to grow.There is no end to it's growth.The world is set to be taken over by AI.Still,there is plenty to be discovered.Hence,the demand iincreases. As for IT,the world is becoming more digitalised day by day. Every thing is now being digitalised.Gone are the days when people needed to go far away for some purpose. From Friendship to Million Dollar deals are now made online.Hence, IT is growing exponentially too. So,goes the pay for the people specialised in them.

Lack of Awareness - In India,you first become an engineer and then you decide what you do with life. This is one of the best quotes I have heard in my recent memory. Again,what does a student (unaware of his skills) look for? Money ! Hence,he chooses CS
Trend - Since,we are speaking of India,you must be aware of JEE. Nearly all the JEE toppers opt for IITB CS. Had I been one of them,I would do it too.

Because,all the toppers in the past have done it. There was a time when the toppers used to choose IITK but somehow now everyone goes to IITB. This year only two out of top 62 chose their interested streams.(No offence to the toppers)

The above reasons are why we produce so many unskilled CS grads. They are talented in their own interests but the society has destroyed them.

Also,same is the case with other stream Indian grads.(Out of topic but worth read)

Many Mechanical Engineers can't define torque properly.If they do,then they can't explain it to you. Why? Because in India,it is recognised as the second best stream to join. Same goes with Electrical guys too. Our people are more concerned about the college,stream,infrastructure and qualifications of the people in colleges. Research, Experiments,Innovations make no sense to majority of the people.Maybe one day,we grow as a fully enthusiastic nation.