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The Indian education system is presently facing several issues and challenges. Education is a continuous process. It deals with over growing man in ever growing society. The word education originated from the Latin word which means” to bring up”. Education should clarify, Man’s relation with man, Man’s relation with the universe and Man’s relation with creator or God. The importance of Education is today’s need as it is the not only the development of intellectual skills and knowledge but also to effective growth and development of Indian Economy. Education has been found a major source of productivity growth in post-war era, and because Education increases productive human capital, it contributes to overall increase in Economic growth, It is estimated that from 1948 to 1973, Education and the innovated accounted for two-thirds of the increase in U.S. In light of the many Potential benefits of International Trade such as increased sales (or) revenues, cost reductions, technology transfers, the search for higher quality products, industry development, general economic growth of India. Globalizing and Privatization has increased economic competition within and between countries and the world’s regions. Economics compositeness is commonly seen as a valid index for judging a country levels of economic Prosperity. Many recent Large – Scale Education reforms have been justified by the urgent need to increase Labour productivity and promote Effective economic development and growth through expanded and improved education. The concept of effective Growth of Indian Economy is much wider in scope than the Role of Education at covers and higher Level.