Although there have been challenges to higher education in the past, these most recent calls for reform may provoke a fundamental change in higher education. This change may not occur as a direct response to calls for greater transparency and accountability, but rather because of the opportunity to reflect on the purpose of higher education, the role of colleges and universities in the new millennium, and emerging scientific research on how people learn. These disparate literatures have not been tied together in a way that would examine the impact of fundamental change from the policy level to the institutional level and to the everyday lives of college and university administrators, faculty and students.

Indian higher education system is the third largest in the world, next to the United States and China. Since independence, India as a developing nation is contentiously progressing in the education field. Although there have been lot of challenges to higher education system of India but equally have lot of opportunities to overcome these challenges and to make higher education system much better. It needs greater transparency and accountability, the role of colleges and universities in the new millennium, and emerging scientific research on how people learn is of utmost important. India need well skilled and highly educated people who can drive our economy forward. India provides highly skilled people to other countries therefore; it is very easy for India to transfer our country from a developing nation to a developed nation. This study aims at highlighting the challenges and to point out the opportunities in higher education system in India.