Significant political and socioeconomic changes are occurring in Indian society, which have an immediate impact on the system of higher education. The current study looks at the two issues that are changing educational ideals and institutional functioning: the rising impact of extreme Hindu nationalism and the demands of the neoliberal market. Commercialisation has, on the one hand, diminished academic autonomy, decreased public accountability, and resulted in insufficient finance. Ideological interventions, on the other hand, pose a challenge to reason, scientific temper, and the long-held notion that universities are places of open inquiry. The core goal of higher education in India is changing as a result of these coupled factors. The history of the Indian education system, from the comprehensive Gurukul model to post-independence changes, is also discussed in this paper, along with the contributions of significant commissions and policies. It also examines how learning habits have changed in the twenty-first century due to globalisation, technological advancement, and changing professional needs. We go into great length on issues including excessive social media usage, diminished enthusiasm in studying, and the widening gap between traditional education and contemporary skills. All of the secondary data used in this study came from reliable web sources, publications, research articles, and policy documents. The study emphasises the important need for changes that support inclusivity, critical thinking, educational integrity, and skill-based learning by examining the body of existing literature. With the goal to make Indian higher education more relevant to current societal and global demands, the research paper's conclusion emphasises the need of bolstering governance, enhancing teaching-learning procedures, and promoting innovation.