In my opinion, the answer to your question would be "yes". Education system in India has failed to educate. At the most, I am prepared to moderate my opinion to say that it has failed to impart an all-round education to the sufficient degree.
Education in the post-independence India is still unduly loaded with the colonial baggage. It is all about tests/examinations, about getting good marks/grades, more often than not learning little of enduring value. Students are loaded with huge syllabuses, perpetually haunted by the spectre of faring well in the examinations, crammed with notes and tuitions.
Primary education is still not within the reach of many children. Somehow the high rate of drop-outs is being contered with the ridiculous "mid-day meal" campaign. There is always a shortage of teachers, and properly qualified teachers with mission and motivation are very rare to find. Politicians of all hues are interested in interfering with the policies rather than doing any real good to the innocent millions looking for proper educational care.
Education means a totality of growth that requires honest holistic approach. That totality is so miserably missing.