This chapter argues that massification of higher education in India reflects a reduced focus on knowledge production and on employability skills leading to questions on the extent of contribution of higher education to sustain economic growth and reducing inequalities in access to higher education. The higher education institutions need to seek a balance between training of minds and training of hands to limit the adverse effects of academic drift on the one hand and producing unemployable graduates on the other. It argues that equity in access to higher education and skill formation are necessary paths to ensure better jobs, improved well-being and sustainable development. It also makes an analysis of the education and employment-unemployment pattern in India and shows the positive-negative relationship between levels of education and employment/unemployment. It further argues that education level and employment status determines the nature of income distribution and the extent of income inequalities and in this context, the proliferation of private players in higher education, increases inequality in access to higher education, which results in differential access in employment and earning levels too.