Abstract Boundaries among nations are breaking and there is an urge for global citizens as the whole world is converting into global villages.Technology is changing very fast so the education system also needs to move as per the need of the time.With this transition,words like values,entrepreneurship and innovation are becoming more important than Government is emphasizes on developing the learner in such a manner that in spite of seeking for jobs ,they will become job giver.For this Innovation is also getting large attention and being promoted at all levels.All these transitions are heartily welcome in higher education system with equal emphasis on inculcation of values in learners.This paper presents an overview of the Indian education system so far and and discusses about hindering factors in the direction of promotion of entrepreneurship and innovation.In addition of that it also talks about steps (like PMIS, BHASKAR platform , PRABHAAV Facebook, startup Mahakumbh etc.), taken by GoI to promote innovative ecosystem for entrepreneurs.Furthermore,it suggest ways for development of such a culture of entrepreneurship and innovation in the value based higher education system.