It is not only India where you will this problem. It is there almost everywhere in the world, with only a slight variation in the degree to which they are exam oriented.
The one exception, which sticks out very prominently, is the Finnish education system, which I believe is founded on the principles of the Waldorf Education system. Their system has proven to be very effective in producing the most holistic students.
Perhaps India should look into the Finnish Education system for ideas.