Today the requirements in higher education are vast and majority of the population in the country cannot afford higher education as their per capita income is very low. Neither the government nor the private sector alone can cater to the requirements of higher education. It is in this context, one should look at the scope, feasibility, inevitability and the usefulness of private investment in higher education. This article analyzes the role and importance of public-private partnerships in Indian higher education system. The author points out some of the arguments for and against public-private partnership in education and some measures that the government can adopt to promote public-private partnership in education. The case of Indian higher education sector is also analyzed in another section. The article concludes that there must be a healthy partnership in the field of education by helping each other and contributing together. This study is descriptive in nature and based fully on secondary data.