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The objective of this article is to analyze the existing funding pattern in higher education in India and evaluate the suitability and feasibility of various alternative funding strategies. In India, the government predominantly sponsors higher education. However, considering that higher education benefits both society as a whole and individuals, and tends to attract more privileged segments of society, there is a case to be made for shifting the financial burden from the societal level to the individual level. Due to resource limitations and concerns about equity, relying solely on general tax funds for funding higher education may not be an ideal long-term approach. Consequently, alternative policy options are explored, including public funding, student loans, graduate tax, student fees, and the involvement of the private sector. It is argued that employing a discerning pricing mechanism would be a more effective and equitable solution among these options. While the government must continue to bear a significant portion of the higher education costs due to socio-economic and political realities, efforts should be made to develop a funding model that incorporates a range of techniques rather than relying on a singular approach. Moreover, it is advocated that fee and subsidy strategies should be tailored to different tiers and types of higher education.