I'm afraid that may be what is really going on.
That said, we really have to stop holding India and China as a model for education. Yes, they've had some tremendous success, but they absolutely do not produce hundreds of thousands of ultra talented scientists and engineers. Most "stem workers" produced from this system are unemployable as by the standards we have in the US (to be fair, so are many college grads in the US - we just don't record them as "engineers" in our numbers). IIT is a remarkable institution, but it is tiny. I think something like the University of California system - which provides a quality education to hundreds of thousands - is much better approach.
Personally, I'd learn from China and India, sure, but I'd prefer that we set our own standards for excellence as a nation and strive to achieve them.
The good news: once upon a time, even more recently, it would have been unimaginable for a man socially identified as "black" to become President, especially after lengthy childhood residence in Indonesia. So there is a President who understands other countries, and who wants to make sure that the United States steps up to meet world standards in education. As an American who has lived overseas myself, I figure it's good that this issue finally is getting attention.
From the linked Times of India article, the primary source:
"'At the start of my administration I set a goal for America: By 2020, this nation will once again have the highest proportion of college graduates in the world. We used to have that. We're going to have it again,' Obama said amidst applause from the audience."
What do all of you think about defining the education goal in these terms? Is having the highest percentage of college graduates really the main issue?