Is University reputation considered when I am applying for a PhD in Europe?

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Hello there, I am currently studying for a entrance exam to get into a masters program in either IITs (Indian institute of Technology) or NITs (National Institute of Technology) and by the looks of it, it's seeming more and more likely that I would get an NIT.

NITs have a slightly bad reputation than IITs in India. The IITs are the creme de la creme of Indian universities but NIT's are for people who don't get IITs. This would not have been the end of the world had it not been for the fact that I don't want to do a PhD in India (having heard terrible reviews for it from the ones who have done it). I want to move out of here for good when I finish my Masters, so I was wondering if the reputation of the institute was a deal breaker when it came to applying for PhD's (in Europe particularly) or would a good GRE Physics, research proposal help me while applying for a University?

Any suggestion would be helpful.

Edit: Actual helpful answers are very much appreciated. I am depressed and in pretty bad shape right now and I have gotten no sleep since 1 day.
 
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Slimy0233 said:
Actual helpful answers are very much appreciated.
This sounds a lot like "tell me what I want to hear." A lot.

Do you really think the university quality doesn't matter? Seriously? That your odds would be the same coming from some place with a poor reputation than Harvard or Oxford? Seriously? This just reinforces my belief that you want us to tell you what you want to hear.

You have to face facts. The fact is you struggle with 1st year undergraduate physics problems, and are in no way ready for graduate school. If some place takes you anyway for an MS program, they cannot possibly have a good reputation and they cannot possibly prepare you for a "real" graduate school in just 1-2 years time, since you need to also learn the entirelty of an undergraduate program in that time.

Your original plan was to learn 4 years worth of material in 8 months. Your new plan is to learn 5 or 6 years worth of material in 1-2 years. This is the same plan. It didn't work before. What makes you think it will work now?