The National Education Policy 2020 marks the most significant reform in the Indian education system since 1986, envisioning a holistic,
multidisciplinary, inclusive, flexible, and globally competitive higher education ecosystem. While the policy presents transformative aspirations, successful implementation depends largely on the preparedness of higher education institutions (HEIs). This paper develops a conceptual framework integrating Institutional Readiness, Academic Innovation, and Sustainable Quality Enhancement (IASQ Framework) to explain how higher education institutions can effectively implement NEP 2020. Unlike studies that primarily describe policy provisions, this article proposes an original institutional model demonstrating the dynamic relationship between
leadership, governance, faculty development, curriculum innovation, technology integration, student-centred learning, quality assurance, research culture, community engagement, and continuous improvement. The framework emphasizes that institutional transformation is not merely structural but cultural, requiring strategic leadership, collaborative governance, evidence-based planning, digital transformation, and sustainable quality mechanisms. The article further discusses implementation challenges, policy implications, and strategic recommendations for universities and affiliated colleges. The proposed framework contributes to educational policy discourse by providing a comprehensive roadmap for assessing institutional readiness while promoting innovation and continuous quality enhancement in higher education.