||It is being increasingly realised all over the world that economic wellbeing and productive efficiencies are a function of man’s intellectual and professional capabilities. Low levels of education, poor health and nutrition, little training and skill development have been the major impediments in the growth process of the developing world. The fact cannot be denied that a good quality human resource base is extremely important in today’s highly competitive environment. Thus, the biggest challenge for the developing countries is to prepare a highly skilled and trained workforce through innovative teaching and a responsive as well as dynamic education sector. India’s demographic bulge at the centre --- with a growing proportion of people in the age group of 15-59 can become its biggest advantage or disadvantage if not handled properly. Hence the biggest challenge lies in harnessing this so called “ demographic dividend”. The demand for labour is likely to remain high and robust in the coming years not only in the country but internationally but this would be demand for skilled and qualified labour. Employability of Indian youth has emerged as a major concern in recent years. Ironically, it is not just the uneducated and untrained who lack skills but it is also the educated who consistently lie below the required standards. It is with this background that the study focuses on analysing the growth and changing structure of the Indian higher education system, assess the degree of its responsiveness to the changing needs of a growing economy, particularly after liberalisation; develop an employability index for India’s high growth sectors by identify the existing skill gaps and suggest a broad pathway to bridge the industry academia gap.