The higher education system is very essential to the country's entire growth, including industrial, social, and economic development. India's higher education system is the world's third largest and the word "democracy" comes from two Greek words: "demos" (meaning "people") and "kratos" (meaning "power"). As a result, we might argue that democracy refers to the people's power. The term "democracy" is no longer limited to a specific definition of government, social structure, or economic situation; rather, it is now seen as a way of life. Education and Democracy are intimately connected. To make education more effective, meaningful, relevant, and beneficial, democratic values are implemented. Individuals, on the other hand, can only learn about human rights and responsibilities through education. As a result, we might conclude that democracy and education are mutually dependent. Decentralization of power and education go hand in hand in a country like India. The huge demographic extend calls for this division whereby we can have better excess and quality education. The huge population brings about inequality in terms of gender, caste and religion. The dominance of majority over minority is often felt in a country like India. Thus, when government use approaches like decentralization of education a better education system with better access and quality is aimed and ensured. This approach to education brings vertical development in society. Although much more is yet to achieve to bring out the best results in decentralization of education. This study investigates how the Government, policymakers, local community members, teachers, and families can all play a major part in making decentralization of education a success. We need to improve teaching pedagogy and establish connections between research and teaching to strengthen the higher education system. This is important not only for economic progress, but also for social cohesion and the empowerment of the country's future. This paper also discussed the current status of higher education in India as well as the issues that it faces.