Eastern India, particularly Bihar has a long history of organized education and learning from the beginning of cultured human society. This region had played very significant role in making people educated and civilized. In the year 2001, Bihar’s literacy rate was 61.80%. But as per the survey conducted in the year 2011, the literacy rate shows a upward trend and it is 63.82%. Coming to educational sector, In Ancient time, Bihar had well governed administrative system in the country. Educational sector was well developed with universities like Nalanda and Vikramshila attracting students from all over the world. But Bihar with such a glorious history of education and learning in the past is currently one of the most educationally backward state. Most of the new proposals are pending due to government’s lack of interest. There appears to be a correlation between the quantity and quality of higher educational institutions in the state and its economic and industrial development. More number of Qualified manpower and sustainable growth of economy is necessary. This also implies that social economic imbalances and creation of capacity for higher education in the state are mutually related. The deteriorated situation of higher education in the state needs to accord priority.