In some cases, Indians out-performed even the white British population with a higher percentage increase in those with degree level qualifications.
"Since 2008, all ethnicities have seen an increase in the proportion with a degree-level qualification, however compared with the increase for white people (5.9 percentage points), Indians saw the largest increase (18.1 percentage points)," says the report by the UK's Equality and Human Rights Commission.
The report titled 'Healing a divided Britain: The need for a comprehensive race equality strategy' warned that the UK must tackle the problem of an "entrenched" race divide up and down the country.
"We must redouble our efforts to tackle race inequality urgently or risk the divisions in our society growing and racial tensions increasing," said David Isaac, chair of the Equality and Human Rights Commission.
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The commission recommended that responsibility for race equality strategy be brought under one government minister and new targets to improve opportunities and outcomes for ethnic minority communities be introduced.
A UK government spokesperson said "real progress" was being made - with black and ethnic minority employment rates at their highest levels for 15 years.