The world has realized that the economic success of the states is directly determined by their education systems. Education is a Nation's Strength. A developed nation is inevitably an educated nation. 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. The current study aims to highlight the challenges and to point out the opportunities in higher education system in India.