Language and literacy issues in India are reviewed in terms of background, steps taken to combat illiteracy, and some problems associated with literacy. The following facts are noted: India has 106 languages spoken by more than 685 million people, there are several minor script systems, a major language has different dialects, a language may use different scripts, several languages have varieties due to caste or religion, and many minor languages do not have a script. More than 63 percent of the total population is illiterate, especially among the rural population and among women. Literacy campaigns since 1937 are described and reasons for their failure are discussed including both organizational and conceptual problems. India's multilingual, multiethnic, and multicultural nature is cited as a cause of many of the problems involved in implementing successful literacy programs, since there is a conflict regarding the medium of literacy instruction. Examples are cited, however, of some minority groups that are demanding to receive literacy in the dominant state language. It is concluded that more information on reading research, ways to facilitate communicative competence, and data collection are needed. Contains 9 references. (LB)