Indian higher education system is one of the largest in the world. But the standard of higher education imparted in our universities and colleges is far from satisfactory. Similar situation is prevailing in Punjab. Due to huge quantitative increase in the number of higher education institutions in Punjab in the past few years it has lead to the overall deterioration of higher education system. There are a number of problems facing higher education system in Punjab. Government and aided general education colleges in district Ludhiana has been particularly chosen to study some of these problems such as lack of college-industry interface, financial aspect etc. Findings of the study revealed that majority of the respondents felt that higher education in Punjab is not according to emerging needs of society; there is necessity to develop college-industry partnership and inadequate financial support given by the state government to fill vacant posts.