What should be the salary for a UX designer with 5 years of experience and has a masters in design degree from one of the IITs?

However much you can negotiate :) the world doesnt revolve around YOE outside of HR realm.

The salary isnt directly correlated to years of experience in design field. Your exposure to building products, or servicing design, your knowledge, presentation, impact you would have had in previous companies, and how you tell the story of that impact. Even brands you have helped build or worked with matters more than YOE.