fundamental issues in the indian education system

this post is going to try to continue to add salt to the turmoil expressed earlier.
this is likely to be a mish-mash post with a variety of thoughts that i had articulated in mails to others over these very topics.
there is a good enough point to start from - what is education for? this i fully agree with.

Now, why is education such a mega issue/problem in India?

Historical Issues
1. The British created the currently prevalent education system with a clear objective to fill in their requirements for bureaucratic staff. That the same system continues till date indicates a lack of intellectual investment is crafting a system which reflects the changed situation in India at the time of independence.

Societal Issues
1. Growing economic gaps between the 'haves' and the 'have-nots' – leading to a disparate structure in the types of schools available for different sections. Mirroring the caste system in society, the schools also have been thus classified in their own casteist hierarchy (i.e., government schools are for the poor and so on).
2. It is widely believed that education is the solution for most social evils. And as an escape from poverty. In the current design and delivery of the system, I seriously doubt these theories.
3. Disparity between what is taught in school and what happens in life.

Structural Issues
1. Lack of adequate Govt investment as % of GDP.
2. The clarity issues over division of responsibilities between the Center and the States. Education is on the concurrent list.
3. The incoherence between the supply and demand of teachers – while the appointment of teachers is with the primary education departments, the creation of teachers (Colleges, etc) is with the College education dept.

...to be continued