"Central universities must act as a catalyst in taking forward this policy and make India a knowledge economy," he said addressing the conference of vice chancellors here.
Mukherjee also emphasised on the need for policy formulation that promotes autonomy and good governance as he noted that dearth of key talent for important academic and research positions in important institutions of higher education was a major challenge.
Flight of intellectual capital also needs to be discouraged by addressing service conditions of faculty and offering teachers incentives to serve the institutions within the country for longer periods, he said.
A directory of grassroot level innovators should also be maintained by the universities, he added.
"Higher education has to fulfil the aspirations of the youth who are restless and are looking for directions," he said.
The conference, being attended by 40 central university vice chancellors, is being hosted by the President in his capacity as chancellor of these varsities. The last one was organised by the then President APJ Abdul Kalam in 2003.
More From This Section
Expressing concern over the declining quality of higher education, he stressed on reversing the trend and improving the enrolment ratio especially among the scheduled tribe population which is half the national average.
The gross enrolment in the country in 2010 was only around 19 per cent, much below the world average of 29 per cent, he said.
HRD Minister M M Pallam Raju, who addressed the meet, said there should be mandatory accreditation of universities which would set a bench mark of quality.