What is wrong with the Indian education system?

The 350+ answers are consolidated to the best possible extent

The main types of answers appear to be:

1) Half the country does not even have access to proper education, and only a small
fraction can go to university.
   - Lack of quality primary education for the poor
   - Limited seats in Universities

2) Everything is about rote memorization, leading to behaviour which encourages cramming

and forgetting rather than lifelong learning.

3) Standardized testing determines everything, and aptitude of students is not recognized

outside this format

4) Lack of diversity in the subjects you can take in college (e.g. can't double major in Math
and German like you can in the USA)

5) Extreme pressure from parents / society to use education for financial security = CSE
degrees for programming jobs or medicine. Societal pressure to get into the "right schools",
not only for the education aspect but to ensure good job/ marriage prospects, in general
success in life. Little incentive to take risks and follow own interests or encourage creativity.
Generally conformist culture, which makes educational achievement the only thing that
matters to social standing.

6) Additional extreme pressure due to limited seats resulting in very intense competition
between students.

7) Reservation system 

8) Management quota system What is management quota? - Yahoo Answers

9) Government control of education/ Government Monopoly in education. 

10) Right to Education Act. 

11) Education sector is closed to for-profit organizations.

12) Few opportunities and flexibility to cross over into different streams of education.