Indian youth protesters called off weeks of demonstrations and celebrated in the streets on Saturday after the education minister quit and Prime Minister Narendra Modi’s government bowed to demands including calls to fix a cheating-prone exam system.

"All our demands have been accepted, so we request the protesters to withdraw immediately and return home peacefully," CJP spokesperson Ashutosh Ranka said after a meeting with government ministers.

The CJP said protesters should disperse peacefully following the outcome of the talks.

The worst political crisis of Modi's third term in office had peaked this week when thousands of protesters marched on parliament, with police using tear gas to control them.

The resignation of Education Minister Dharmendra Pradhan, the students' primary demand, came as a surprise because Modi has a reputation for refusing to act under pressure.

Celebrations erupted at the Jantar Mantar protest site in the capital Delhi, with thousands of youngsters chanting victory slogans and dancing.

"We have done it," said Abhijeet Dipke, CJP's founder, to loud cheers at the site.