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India has significant advantages in the 21st century knowledge race. It has a large higher education sector, the third largest in the world (in student numbers) after China and the United States. It uses English as a primary language of higher education and research. It has a long academic tradition. Academic freedom is respected. There are a small number of high quality institutions, departments, and centers that can form the basis of quality sector in higher education (Bundy, 2004). The fact that the States, rather than the Central Government, exercise major responsibility for higher education creates a rather cumbersome structure, but the system allows for a variety of policies and approaches.