Education is one of the most powerful instruments for reducing poverty and inequality. Education is equally key to enhance India’s competitiveness in the global economy. Therefore, ensuring access to quality education for all, in particular for the poor and rural population, is central to the economic and social development of India. Education in India is provided by the public sector as well as the private sector, with control and funding coming from three levels: federal, state, and local.  India has made progress in terms of increasing primary education attendance rate and expanding literacy to approximately two thirds of the population.

Despite growing investment in education, 25% of its population is still illiterate; only 15% of Indian students reach high school, and just 7% graduate. As of 2008, India's post-secondary high schools offer only enough seats for 7% of India's college-age population, 25% of teaching positions nationwide are vacant, and 57% of college professors lack either a master's or PhD degree.

As of 2011, there are 1522 degree-granting engineering colleges in India with an annual student intake of 582,000, plus 1,244 polytechnics with an annual intake of 265,000. However, these institutions face shortage of faculty and concerns have been raised over the quality of education.

Since 2000, the World Bank has committed over $2 billion to education in India. It also provides technical support. Assistance includes Early Childhood Development, Elementary/Primary education, Secondary Education, Vocational education and training, Technical and Higher education and Support to States.

Kapil Sibal, the Union Minister for Human Resource and Development (HRD) and Information Technology, while inaugurating the World Education Summit 2011 (WES-2011) stated the need of mobility of students from one university to the other mid-session and the need for public private partnership (PPP) so that major reforms in the education system could be embarked upon.
He also emphasized upon the parallel system of vocational education exactly like the formal system of the Central Board of Secondary Education ( CBSE).

The education loan growth rate in public sector banks (PSBs) is witnessing a continuous declining trend, while the number of education loan accounts are increasing, the year-on-year growth rate has been showing a declining trend both in number of accounts as well as in the amount. At present, the model education loan scheme allows loan up to Rs 10 lakh for students in India and up to Rs 20 lakh for the students studying abroad.

The National Council of Educational Research and Training (NCERT) is the apex body for curriculum related matters for school education in India. The NCERT provides support and technical assistance to a number of schools in India and oversees many aspects of enforcement of education policies In addition, NUEPA (National University of Educational Planning and Administration) and NCTE (National Council for Teacher Education) are responsible for the management of the education system and teacher accreditation.

India's higher education system is the third largest in the world, after China and the United States. The main governing body at the tertiary level is the University Grants Commission (India), which enforces its standards, advises the government, and helps coordinate between the centre and the state. Accreditation for higher learning is overseen by 12 autonomous institutions established by the University Grants Commission.

During the Financial Year 2011-12, the Central Government of India has allocated Rs 38,957 crores for the Department of School Education and Literacy which is the main department dealing with primary education in India.