The major defect in the Indian system of education is that cramming is given too much importance where as thinking and understanding is given a go by. That's why Indian kids are unable to win any major awards (Nobel Prize included) because they are just incapable of using their brain. Indian kids win "Spelling Bee" awards because it is all about mugging up the spellings. "Thinking" culture needs to be inculcated in our kids else India will never be able to make inroads in the research frontiers.
The American scheme is very good to follow in that it helps in the allround development of personality.