This research aims to study the effectiveness of online teaching, from student and faculty perspectives, during the Covid‐19 Pandemic in higher education institutions across India. Using the Student's Evaluation of Online Teaching Effectiveness (SEOTE) scale, a survey was conducted among 1042 students in different Indian universities. The scale measured student faculty contact (SFC), cooperation among students (CAS), active learning (AL), prompt feedback (PF), time on task (TT), high expectations (HE), and diverse talents and ways of learning (DTWL). The research instrument also included three open‐ended questions. The quantitative data were analyzed using descriptive statistics and Human Development Index (HDI). The Online Teaching Effectiveness Index (OTEI) value was moderate at 0.62. Challenging aspects of online education were found to be access, learning experience, technology, resources, and infrastructure, the need for face‐to‐face interaction, and the health hazards of long screen time. The survey of 60 faculty members recorded online teaching to be sustainable, backed by institute support, flexible, and creates the possibility of peer learning. Lack of training resources, unsuitability of course design and practical courses for online mode, and the need for an overhaul of pedagogy were the challenges. Policymakers and digital companies should include infrastructural changes and investments at both the institutional and digital platforms level.