Entrepreneurship education plays a crucial role in shaping the future of aspiring business leaders, yet significant gaps persist in the Indian education system. While India has emerged as a global startup hub, with thousands of startups and unicorns, many students struggle due to a rigid curriculum, limited mentorship, and inadequate exposure to practical entrepreneurial experiences. This study explores the key challenges students face, including fear of failure, lack of financial literacy, and minimal awareness of government support programs. Through surveys and interviews with MBA, BBA, and non-business students, the research identifies critical barriers that hinder entrepreneurial aspirations. Findings highlight the need for hands-on, hybrid learning models that blend theoretical knowledge with real-world application. Incorporating digital tools, AI-based market analysis, and mentorship from industry professionals can significantly enhance entrepreneurship training. Additionally, financial management education, access to startup funding, and curriculum reforms are necessary to equip students with the skills needed for successful ventures. By addressing these challenges, institutions can foster a culture of innovation, risk-taking, and resilience among students. Strengthening entrepreneurship education through policy interventions and institutional support will not only empower young entrepreneurs but also contribute to India’s growing startup ecosystem, driving economic growth and job creation.