Does the CGPA matter a lot in engineering?

Yup. It does matter but not very extensively.Many companies have Some CGPA criteria if you possess that much CGPA then only you can apply for such Companies. So you should have CGPA to clear the Criteria of the compnies

Also if your Planning for MS then Colleges does give importance to CGPA.

Apart from these two factors I dont think CGPA’s are of any importance .The important thing is knowledge and your ability to learn new things.