Education -- all-round development of human -- consists of wisdom as well as moral development. It starts with the family. Shaping of clay-like mind will depend on how we are moulding it. We must start with giving moral education.
Then comes the responsibility of educational organizations and the teachers. No body here cares for knowledge instead demands marks. History reveals many successful persons were not well in academics or even they were driven out of their institutes. The education must help on developing industrial skills for the ongoing "Make in India" project. Teachers must be student friendly and must remember that every one does not have equal caliber and their wishes also varies.
During his childhood, John F. Kennedy’s father used to advise him to do whatever he wish, but he must try to be the best in that field. He should be the best grass cutter of the nation, if he opts to serve as grass cutter. But Indian parents will be upset even if you score 90% cause it's not 100%. They push them in the stream (engg. or medical) where they want without giving priority to child’s wish. They teach their kids succeed any way formula and forget to teach honesty, truthfulness and sincerity.
To introduce moral and value based education in the system the education should start from family itself. Every institute must focus must be on improving practical skills. And lastly moral things must be essentially taught right from their primary education.