**Abstract**

The Indian higher education system is one of the largest systems in the world. India has seen a big development in the higher education sector as enrolment and the numbers of higher educational institutions have increased almost four-time in the last two decades. Service economies in developed countries tend to have a great demand for higher education. India contributes to the global workforce is only marginal. Education produces social justice in the future as well as being a benefit to young people in the present. Education suggests that the power of intellectual curiosity and the love of learning were equally strong motives as the need for a social leader. The recent NEP 2020 seeks equity and inclusion through education. Online education used to be an outlier until the Covid-19 pandemic placed it at center stage. The story of India education system is obsessed with examinations and grades. With no financial support to build new facilities or open new universities, enrolling students online seems the logical solution to boost capacity. The growing demand for admission in higher educational institutions in India coupled with the inadequacy of public expenditure on the same sector.

**Keywords:** new education policy, higher education, Indian education system, digitalization and public expenditure
