What are the major problems in indian education system?

Being non-Indian, it would be natural to decline answering this question. 

However, having been to RV College of Engineering in Banglaore/Mysore State, and having worked with Indian colleagues in Saudi Arabia/Gulf region, and having worked on consultancy/professional services related to Indian schools abroad in the GCC region, I think I may give my answer here and I hope it would be a qualified answer too

The first two major things to notice about Modern Indian Education System is the influence of the "heritage/culture" factor and the history associated with British Colonolizaton leading to the "British Influence Syndrome"  on Indian education. 

Quite recently, I noticed a shift towards "American culture influence" due to the Amercian business impact on Indian economy and society, and the global dominance/impact of the USA on education worldwide, specially when it comes to technology and business

Coming to the major problems in the Indian Education System , I may quote things I came across personally or heard from other people

1. Lack of proprtionality between the level/penetrtion of education compared to the total number of Indian citizens, specially kids and noting the differences from one state to another
2. Concentration on volume rather than quality.. where Indians tend to memorize more, learn more, store more info, try to copy/mimic other experiences, acquire certifications based on memorizing .... etc .. etc ... versus going for creativiy and innovative thinking outside the box and in non-traditional ways
3. Problems associated with finance and funding for the public education system in proprtion to the demand level
4. Attitude/Discipline problems due to Indian culture itself (sects and levels within the society), British habbits coming from military to universites (ragging for example) ,,,,

I hope this answer sheds some light ...

all the best !