University system is exposed to many challenges, such as political interference, lack of accountability, inadequate funding and general student indiscipline, on and off the university campus. Today, higher education is facing two major issues. Increased level of competition on one hand and declining resources at the other. The challenge of competition has been reflected in concerns about the degree to which institutions-both public and private, and to some extent, global media networks are penetrating the system of higher education. The management of the universities plays a crucial role in the development of higher education. The main problem in the university administration is the problem of the non-teaching staff. Since Independence higher education has grown in the country substantially. Most of the universities in India are still functioning with out-dated procedures, rules and regulations. The main objective of the present study is examined the status and challenges of the higher education in India.