A Central University of India is formed by the Government of India, by an Act of Parliament, while other universities in the country are established by the State Governments. The Government of India is responsible for arranging, allocating and distributing financial resources required by the University Grants Commission (UGC) for the establishment of Central Universities in India. Currently there are 19 Central Universities in India with the University of Mizoram being the latest entrant. The higher education system in India being one of the largest in the world, the responsibility rests on the Central Government to devise policies with a view to improving the quality of higher education in India.

Since the State Governments establish and plan for the colleges and universities in the states and the Central Government does it for the Central Universities, it is essential that there is adequate cooperation between the State Governments and the Central Government in the field of higher education. The Central Advisory Board of Education (CABE) has therefore been constituted to assist in the functioning of the two Governments and ensure that parity is maintained. 
 
The Central Government has also been empowered by a special act of the Constitution to maintain a particular standard conducive to the educational health of the country. The Central Government lays special emphasis on research and development carried out in technical as well as other institutions.