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bstract: Institutional autonomy and academic freedom are widely regarded as essential foundations for the development of effective, innovative, and globally competitive higher education systems. Together, they create an enabling environment for intellectual inquiry, pedagogical innovation, and high-quality research, thereby contributing to academic excellence and societal progress. Institutional autonomy empowers universities and colleges to independently design academic programs, manage administrative processes, and allocate financial resources in alignment with their strategic priorities. Academic freedom, on the other hand, safeguards the rights of faculty and students to engage in critical inquiry, open dialogue, and independent research without fear of external interference or censorship. In recent decades, higher education systems worldwide have experienced growing regulatory oversight, performance-based evaluation, and market-oriented reforms, which have intensified debates regarding the balance between autonomy, accountability, and governance. While regulatory mechanisms are necessary to ensure quality assurance, transparency, and public accountability, excessive control can restrict institutional flexibility and weaken the creative potential of academic communities. This study critically examines the conceptual foundations, historical development, and contemporary policy frameworks related to institutional autonomy and academic freedom, with particular emphasis on the Indian higher education context and relevant global perspectives. Key words: Institutional Autonomy, Academic Freedom, Knowledge Innovation, University Excellence.