Good governance enhances efficiency both in public and private sector organizations. Productivity and good governance are closely associated to aid value for investment both in terms of time and money, and end-user satisfaction. Productivity Enhancement and quality improvement of higher education depend on governance-trends and productive leadership of the institution. Discipline, and quality vision set, and policy practiced by the leadership in Higher Education Institutions (HEIs) propagate down the timeline-hierarchy. This article addresses the pivotal factors and parameters worldwide studied, accepted and opined in various case studies and policy making schemes for good governance of Higher Education Indian Institution (HEIIs). This is necessary to enable their leadership enhancing the organizational productivity for 21st-century Indian subcontinent. The 3rd largest youth in the world studying in HEIIs would contribute the most to the growth of 21st-century Indian economy and living standards. This shall be possible when educational productivity of HEII-leadership is innovatively transformed into transformative innovation. In this paper effects, consequences, impacts, opportunities, problems and remedies regarding pivotal issues and challenges of and for existing HEIIs for becoming world-class education system are systematically reviewed. Recommendations based upon studies and findings are made for 21st-century HEII-leadership, and practical model is presented to measure the productivity.