This article takes a critical look at the higher education sector in India. It notes that even though the number of institutions and enrollment in higher education continue their rapid growth (in excess of population growth), the quality of this education outside of a handful of institutions is questionable. The number of such graduates remains small relative to the population and demands of India's economy. In general, graduate education continues to remain in an alarming state with respect to both quality and quantity. India's impressive economic performance has made the problem in higher education seem less urgent than it actually is. The article discusses several of the challenges facing higher education: the system's inability to attract the best of the best to lives of teaching and scholarship, the separation of education and research, and a short-term profit motive by private education providers, among others.