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India Today
10 hours ago
- Business
- India Today
Does your degree guarantee a job? The employability crisis in India
When 23-year-old Arjun Mehta walked across the stage at his engineering college's convocation in Pune last year, degree in hand and dreams in his eyes, he assumed the hard part was over. Four years of relentless study, tuition loans, and late-night coding marathons led to this moment. But a year later, Arjun finds himself back in his hometown of Varanasi jobless, disillusioned, and preparing for yet another competitive is not year, over 3 million graduates enter India's job market. Yet only about half of them are deemed employable. That means thousands like Arjun armed with degrees but lacking the skills the market needs are stuck in limbo, watching job offers slip through their fingers. This growing employability gap is one of India's most pressing yet under-discussed crises.A COUNTRY OF DEGREES, NOT JOBSAccording to the India Skills Report 2025, only 54.8% of Indian graduates are considered employable, and other estimates place this figure even lower. The Graduate Skill Index 2025 from Mercer|Mettl puts employability at 42.6%, marking a drop from previous worse, youth unemployment remains staggeringly high. Recent data from CMIE shows that 44.5% of Indians aged 20–24 are unemployed, despite many of them holding graduate or even postgraduate isn't just a statistic. It's a reality that affects millions of middle-class families, pushing students into endless cycles of entrance exams, low-paying internships, and VS SUPPLY: A BROKEN EQUATIONThe problem isn't just the number of jobs it's the kind of jobs available and the skills sectors like Artificial Intelligence, data analytics, cloud computing, and cybersecurity are desperate for skilled workers. These fields report employability rates upwards of 46%, often with 4–5X salary non-technical roles in sales, HR, and finance hover around 45% employability, and traditional degrees in humanities or general science often struggle to fetch even that. Recruiters echo the same complaint: 'Graduates have the degree, but not the skills.' THE COLLEGE CONUNDRUMNot all colleges are created equal. Graduates from Tier-1 institutes (like IITs, BITS, and top private universities) have an average employability of 48.4%. In contrast, Tier-3 or rural college graduates hover around 43%, with limited access to digital tools, industry exposure, or within engineering a field that churns out 1.5 million graduates annually only 35% are considered employable in core engineering to this a weak curriculum-industry alignment, outdated syllabi, and negligible internship exposure, and the result is a talent pool that's drowning in certificates but starved of SOFT SKILL DEFICITEmployers don't just want hard skills—they want professionals who can think critically, communicate effectively, and adapt quickly. But in the Mercer|Mettl report, only 50% of graduates were employable in communication-based roles. Creative thinking was even lower, at 44.3%.India's education system, long focused on rote learning and exam scores, often sidelines these essential traits.A GENDER AND GEOGRAPHY GAPThe gap isn't just educational it's also geographic and gender-basedDelhi leads the employability index at 53.4%, while states like Uttar Pradesh, West Bengal, and Assam fall behindMale graduates slightly outperform females 43.4% vs 41.7% in perceived employabilityRural youth face both digital and social disadvantages, including language barriers and fewer industry connectionsCAN THIS BE FIXED?India is National Education Policy (NEP) 2020 promises sweeping reforms, from vocational training in schools to internships as part of college degrees. Initiatives like PMKVY and Skill India aim to retrain and upskill millions. But implementation remains companies are stepping in too. Firms like TCS, Infosys, and Google have launched training programs to bridge the gap but these cater mostly to top-tier colleges or tech-focused WITH DIRECTIONThe solution isn't to produce fewer graduates—but to produce better-prepared needs:Curriculum reform that matches market demandsMandatory internships and skill-based certificationsSoft skill development from the school levelPartnerships between academia and industryBecause in today's job market, a degree is not a ticket—it's just the starting the young engineer from Pune, is now taking an online course in AI fundamentals. He's hopeful. But like many others, he wishes someone had told him sooner: In India today, a degree may get you to the door—but skills are what unlock it.- Ends
India Today
02-07-2025
- Business
- India Today
From 47% to 78% in 4 years: MBA employability rises with skill-focused curriculum
Once criticised for producing degree-holders with limited practical application, India's MBA education sector is now enjoying a remarkable transformation. Backed by data, industry demand, and updated pedagogy, MBA graduates are now more employable and relevant than ever India, employability among MBA graduates has risen sharply to 78% in 2025, up from 47% in 2021, according to Statista from Wheebox's India Skills Report 2025 and GMAC's 2024 Prospective Students Survey confirm the shift, hiring managers now actively seek MBA graduates with digital fluency, leadership potential, and According to IIM Sambalpur Director Prof Mahadeo Jaiswal, 97% of Indian employers are willing to pay more for candidates with micro-credentials, especially in generative AI and LEARNING IS THE NEW NORMIndian B-schools have overhauled their approach in response to a shifting job market. Institutions like SP Jain Global, IIM Sambalpur, BIMTECH, and Badruka School of Management are embedding AI-powered decision-making, data storytelling, sustainability, and cross-cultural leadership into their MBA Christopher Abraham of SP Jain notes, 'We no longer just teach AI -- we integrate it into learning paths, personalised mentorship, and real-world simulation exercises.' Students now graduate equipped to automate workflows, build predictive models, and apply AI across DEGREE-NEXTHiring needs have evolved. Today, recruiters care less about the name of the institution and more about the functional skills and emotional intelligence of Siddharth Anand, CEO of Tertiary Education Advisors, puts it: 'The MBA graduate who can speak the language of both Excel and empathy is the one who stands out'.This reflects in how MBA programmes now offer courses in ESG strategy, public governance, behavioural economics, and human-centric leadership. Business schools are creating labs for digital transformation, experiential entrepreneurship, and consulting case competitions to help students master practical CLASSROOM TO BOARDROOM: CURRICULAR CHANGESHere's how B-schools are rethinking the MBA journey:Live business simulations and startup incubators—e.g., IIM Sambalpur's I-Hub and Rangavati CentreBlockchain and fintech labs like BIMTECH's 'BIMCOIN' initiative for applied finance learningAI-integrated learning assistants at SP JainRural immersion and sustainability projects for ground-level exposureInterdisciplinary pathways such as BS in Management and Public Policy feeding into MBA tracksAs per Dr Pankaj Priya of BIMTECH, the key shift is in pedagogy: 'From traditional models, we have moved to lab-based learning, career mapping through AI, and psychometric profiling to align strengths with career paths'.STRONG PLACEMENT RECORDS AND FUTURE READINESSIIM Sambalpur reported 100% placements in 2024, with a 21% year-on-year increase in placement value. Recruiters from consulting, BFSI, FMCG, and IT sectors are actively hiring MBA grads who can navigate uncertainty and use digital tools in platforms like GMAC indicate a sharp rise in global recognition of Indian MBA talent, with students eyeing international internships and hybrid work opportunities. MBA students trained in storytelling, negotiation, and personal branding are especially in demand.A SHIFT IN MINDSET: THE INNER MBAWhile technical and analytical skills are crucial, leading B-schools are also focusing on the 'Inner MBA' -- emotional resilience, ethical judgement, and influence. Through structured coaching, case discussions, and workshops, students learn to lead with purpose and build clarity in Anand sums it up: 'We aren't just giving them skills -- we're changing the way they perceive their own potential and their role in the world of work'.FUTURE-READY, TODAYThe rise in employability is not accidental -- it's the result of deliberate reform, collaboration with industry, and a greater understanding of what the market demands. With India poised to become a USD 5 trillion economy, the demand for MBA graduates equipped with adaptive, ethical, and technical prowess is only expected to MBA has come a long way in India -- from being a credential to becoming a powerful launchpad to leadership, innovation, and purpose-driven success.- Ends
Hans India
17-06-2025
- Business
- Hans India
CII organizes Academia Connect 2025 in Bengaluru
Bengaluru: The Confederation of Indian Industry (CII) continued the momentum of its flagship Industry–Academia Connect 2025 at ITC Gardenia, Bengaluru recently to strengthen the ties between India's educational institutions and the evolving industry ecosystem. Held after a successful launch in New Delhi and a high-impact run in cities like Agra, Kolkata, and Ahmedabad, the event in Bengaluru drew strong participation from key stakeholders from sectors such as IT, hospitality, gaming, manufacturing, healthcare, chemicals and pharmaceuticals. Aligned with the vision of the National Education Policy (NEP) 2025, the initiative will go on to cover Mumbai and Chennai next. The Bengaluru leg of the initiative brought together over 60 educators and industry leaders under one roof. The engagement featured high-impact panel discussions, sectoral insights, and a strong emphasis on aligning curriculum frameworks with dynamic industry demands. The leaders reiterated the need to strengthen the connection between education and employment across the country, ensuring that the academic output aligns with industry demands and that businesses benefit from a robust, future-ready workforce. The session was headlined by Sougata Roy Choudhury, Executive Director, Skills, AA and IR, Confederation of Indian Industry; Nilesh Mitra, Vice President, Talent Management, ITC Hotels Limited; Anish Dhiman, Programme Head, CII Institute of Hospitality; Harish Nachnani, Head of Didactic, Festo India Pvt Ltd; Kanav Mata Director and Regional Head (South Asia, Myanmar & Middle East), EHL; Victor Sundararaj, Associate Vice President, Infosys Limited; Dr M Dharma Prasad, CEO and Chief Scientist, Prosetta Bioconformatics. 'The India Skills Report 2025 reveals that only 54.81% of Indian graduates are employable,' said Sougata Roy Choudhury, Executive Director, CII. He said, 'This disconnect between education and employment is a growing concern, not just for students, but for the entire economy. The CII Industry-Academia Connect is a timely and strategic intervention to bridge this gap, by fostering stronger collaboration between educators and Industry to co-create future-ready talent.' Nilesh Mitra – Vice President Talent Management, ITC Hotels said, 'With the evolving dynamics of the service and hospitality sectors, the need for job-ready professionals has never been greater. The CII Institute of Hospitality is fully geared up to supply the industry with well-trained, high-caliber talent equipped with both Industry-aligned skills and service excellence. Through initiatives like Industry–Academia Connect, we are aligning our training ecosystem with real-world demands and ensuring that our graduates are prepared to contribute from day one.' Dr. M. Dharma Prasad, CEO and Chief Scientist, ProsettaBioconformatics said: "In the biotech/pharmaceutical industry, the ability to translate academic knowledge into practical, industry-ready skills is paramount. The future success of our sector depends on the seamless collaboration between academia and industry to ensure that young professionals are equipped with the cutting-edge knowledge and practical expertise needed to drive innovation and meet the evolving demands of global healthcare." The CII Industry-Academia Connect 2025 initiative aims to bring together over 600 educators and industry leaders with the aim of fostering stronger collaboration between industry and academia.
Hans India
22-05-2025
- Business
- Hans India
The Skill Economy Is Here, and Most Companies Are Still Hiring for Roles
India's workforce is at a crossroads. While the global economy shifts towards skill-based hiring, a significant gap persists between the skills employers need and those job seekers possess. According to the India Skills Report 2025, only 54.81% of Indian graduates are deemed employable, despite a 7% year-on-year improvement. This paradox underscores a critical challenge: the rise of the skill economy has not yet translated into systemic changes in hiring practices, leaving companies scrambling to fill roles rather than cultivating talent aligned with future-ready capabilities. The Skill Economy: India's Progress and Persistent Gaps The Skill India Mission, launched in 2015, has trained over 40 crore individuals, contributing to a notable rise in employability—from 33% a decade ago to 54.81% in 2025. Initiatives like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) have enabled sectors such as IT, healthcare, and renewable energy to bridge skill gaps. For instance, Karnataka's PMKVY centres trained 1.2 lakh youths in 2023–24, with 68% securing roles in high-demand industries like cybersecurity and green energy. However, the Wheebox ETS India Skills Report 2025 reveals stark disparities. While management graduates boast 78% employability, women's employability rates have declined to 47.5%, highlighting systemic inequities. Furthermore, only 50% of secondary and tertiary students receive vocational training, leaving a void in sectors like AI and fintech, which require 400,000 skilled professionals by 2030. Why Companies Still Hire for Roles, Not Skills Despite the skill economy's promise, most Indian firms remain entrenched in traditional hiring models. A 2024 survey by TeamLease indicates that 62% of companies prioritise academic credentials over demonstrable skills, citing risk aversion and a lack of robust assessment frameworks. This mismatch is evident in sectors like manufacturing, where 45% of employers report difficulty finding workers with automation expertise, despite India's $2.5 trillion construction industry demanding such skills. The tech sector exemplifies this dichotomy. While India produces 1.5 million engineering graduates annually, only 35% possess coding proficiency, per NASSCOM. Yet, firms like Infosys and Wipro continue to recruit en masse for generic roles, investing ₹10,000–15,000 crore annually in upskilling post-hire—a reactive approach that strains resources and delays productivity. Case Studies: Bridging the Skill-Role Divide 1. Renewable Energy Sector: ReNew Power partnered with NIIT to design a 6-month certification program in solar panel maintenance and grid management. This initiative reduced onboarding time by 40% and improved operational efficiency by 25%, demonstrating the value of pre-skilled talent. 2. Healthcare: Apollo Hospitals introduced a blended learning model for nurses, combining AI-driven simulations with on-the-job training. This reduced diagnostic errors by 18% and cut training costs by 30%. 3. MSMEs in Tier-2 Cities: A Surat-based textile SME adopted our skill-mapping audit to identify and upskill workers in digital inventory management. This led to a 20% reduction in waste and a 15% increase in export orders within a year. The Impact of Misaligned Hiring Practices Companies adhering to role-based hiring face three critical risks: 1. Productivity Loss: It takes 6–8 months to upskill hires for specialised roles, during which productivity lags by 30–40%. 2. Attrition: A LinkedIn report notes that 67% of employees leave within a year if their skills are underutilised. 3. Innovation Stagnation: Firms lose ground to agile competitors who leverage niche skills in AI and data analytics. For India, the stakes are high. With 65% of its workforce under 35, the country must align its demographic dividend with emerging sectors. The construction industry alone needs 7.5 crore skilled workers by 2030, yet current training capacity meets only 40% of demand. A Roadmap for Businesses and Policymakers To thrive in the skill economy, stakeholders must adopt a proactive approach: 1. Skill-Centric Recruitment: ● Use AI-driven platforms like Wheebox's Global Employability Test to assess candidates' problem-solving and technical abilities. ● Expand apprenticeship programs under the National Apprenticeship Promotion Scheme (NAPS), which has placed 5 lakh youths since 2023. 2. Industry-Education Collaboration: ● Integrate vocational training into academic curricula. The National Education Policy (NEP) 2020 mandates this, but only 12 states have implemented it effectively. ● Develop micro-credentials in partnership with platforms like Coursera, which saw a 200% surge in Indian enrollments for AI and blockchain courses in 2024. 3. Gender Inclusivity: ● Address the 8% gender gap in employability through targeted initiatives. For example, Tech Mahindra's 'Women in Tech' program has upskilled 15,000 women in cloud computing since 2022. 4. Government Incentives: ● Expand the Scope of PLI Schemes to include SMEs investing in employee upskilling. ● Offer tax breaks for companies that hire certified candidates from Skill India programs. From Roles to Skills—A Strategic Imperative The skill economy is not a distant future—it is here. Companies clinging to outdated hiring models risk obsolescence in an era where adaptability determines survival. For India, aligning its workforce with global demands requires a concerted effort from businesses, educators, and policymakers. By prioritising skills over roles, fostering inclusivity, and leveraging technology, India can transform its demographic potential into economic leadership. (The author is Founder of Stratefix Consulting)
