Indian Education System - What it is?

Recently i got to know about some of the questions that were asked to a guy during selection process of one of India's top B school. What confused me was the purpose of the questions. Questions about Monetary Policy, Fiscal Deficit etc., to a guy who is not from financial or economic background, really don't get anything out of the candidate. Is a candidate going for MBA supposed to know about countries financial systems. Does knowledge of Monetary Policy means that a candidate is good to do MBA or does lack of this means lack of traits required to be a Manager.

Actually this has been the problem with our Indian education system for long. Here a candidate is not evaluated on what he knows and what talent he has. The evaluation is on the basis that how many things the examiner knows that the candidate doesn't. Performance in a 3 hour exam or a 15 minutes interview is used to give a verdict about the student. What is being done is, this is forcing students to just concentrate on mugging things and not on understanding and questioning concepts. This is killing out innovation from young minds, Which seems to be the reason we are lagging in R&D. Young minds in our country are more interested in getting favorable results using whatever data has been provided. They never think about questioning the concepts.

It is high time government looks towards changing the education and evaluation system in our country or we might be left far too behind when it comes to creativity and innovation.