Distance Education known by different names across the globe literally means learning at distance. In distance learning both teacher and learner are separated in space and time. It builds capability in an individual to go for lifelong learning. India accommodates over 1.21 billion people of different socio- economic, biological and religious backgrounds. Imparting formal education to ever one is not only difficult but impossible. Distance education is not only perceived as driving force in imparting skills down to marginalized section of society but considered an instrument to provide technically competent and economically competitive work force and will help India in emerging a major player in global economy. Lakhs of people in India, who for variety of reasons find it difficult to enroll themselves in institutions demanding physical presence, find the alternative in distance education. Distance learning appears promising to redress social, economic and educational inequalities in Indian context. However there are various challenges in the way to achieve the target and make learning a lifelong process. The paper argues there are several challenges in distance education which are being encountered in Indian context.