Education is to be anticipated for Human resource development and then national development. However, in most of the developing countries, due to the inadequacy of resources it is almost unattainable to educate all of their citizens through on-campus teaching. Huge amount of money is necessary to establish the infrastructure for on-campus teaching which is out of the reach of the developing countries. In these circumstances, to educate their huge inhabitants the developing countries are to depend on open learning and distance education system. However, a question still stands: can the educators dissimulate knowledge to the learners smoothly through this new system of education? Some recent research shows that the graduates of the open and distance learning institutions in the developing countries are treated as second-grade graduates. This paper aims to identify the challenges or barriers in the development of distance and Open learning system in India and suggest possible alternatives may be followed to overcome the barriers