Hello,
It is totally upto you to make this decision. Osmania university is a good place to pursue a biomedical engineering degree. If biomedical engineering, is your first preference, go for it. If it is not your first preference, going for long term sounds like a great way. If you have what it takes to get a seat in iits, why losing the chance. If you think you are good enough to get into iits, you can absolutely go for it.
Make a decision that fits for you.
Good Luck!