In this paper, we explore the evolution of the Indian State's role in governance, and the implications this has for goal setting. We find that the Indian government's activist role in governance marked a change from the colonial period. This, we suggest, was not due to changes in the relative influence of different stakeholder groups. It was instead due to new national developmental goals, particularly industrialization. Fairly quickly after independence, we find that higher education governance came to be exercised in different ways between the center and the states. Control over the system's governance was to later become an arena of contest between the national (central) government and the provinces (states), leading to disagreements on strategies, such as on funding and regulation. In later phases, particularly in the third phase that began in 1984 and continues to the present, the disagreements intensified because educational priorities started changing due to the changes in the relative influence of stakeholder groups and new forces such as globalization.