A lot of software companies do know about MNIT however, don’t expect a jaw-dropping response. People are definitely aware of it though.
However, in my sister’s opinion, once you start progressing in the software industry, no one will actually ask you about which college you are from. You just need to gain experience in the industry for about 3 years and after that, you will no longer be treated like a college graduate. Finally, it is your technical knowledge and projects will be looked at.
If you are concerned about reputation abroad, most institutes abroad are only aware of IITs and many students are asked more about their M.S. colleges than their undergraduate history. You really don’t have to worry about this.