In the changing economic scene in India in particular and all over the world in general, the Indian business is exposed to many challenges like global competition, technological up gradation, quality up gradation, cost consciousness, new combination of means of production, etc. As a consequence of these challenges, the owners and the proprietors of business enterprises started expressing their unhappiness with the products of educational institutions as the graduates and post graduates in commerce education are not up to their expectations. In this article an attempt has been made to describe the purpose of education, meaning of commerce education, problems of commerce education, challenges before the commerce education, major issues to be addressed for re-designing of commerce education.