India’s higher education system is at a crossroads, struggling to align graduate skills with industry demands, as highlighted in a compelling analysis by Dr Phani Kumar Pullela, Dean of Student Affairs at RV University, Bengaluru. The original report, first published on ET Education on 23 April 2025, underscores the systemic issues that leave millions of graduates unprepared for the workforce, threatening India’s economic potential.
A Stark Employability Gap
With nearly five crore graduates entering the job market annually, the scale of India’s higher education output is staggering. Yet, approximately 80% of these graduates are considered unfit for industry roles, equating to four crore young people facing unemployment or underemployment each year. The problem is most pronounced outside the information technology sector, which accounts for only a small portion of jobs. The majority of employment opportunities lie in services, construction, manufacturing, and traditional industries, where technological advancements are less dynamic. This misalignment reveals a critical disconnect between educational outcomes and the diverse needs of India’s economy.
Evolving Educational Landscape
The democratisation of technical skills through platforms like NPTEL, SWAYAM, and Udacity has empowered motivated students to acquire competencies, such as programming, in mere weeks. However, the persistent narrative that most graduates lack employability points to deeper structural flaws. In the past, Indian graduates were lauded for their analytical skills and adaptability, driving innovation in global tech hubs like Silicon Valley. The current decline in their perceived readiness raises pressing questions about the quality and relevance of modern education.
Curriculum and Faculty Challenges
Students frequently criticise university curricula as outdated and disconnected from industry requirements. Regulatory bodies, including the University Grants Commission and the Ministry of Human Resource Development, have introduced online learning initiatives to bridge this gap, but these efforts have fallen short of resolving the crisis. A key issue is the erosion of faculty influence. Over the past two decades, regulatory changes have increased student-faculty ratios and prioritised digital courses over investment in qualified educators. This shift has diminished mentorship opportunities, which once nurtured critical thinking and problem-solving—skills essential for workplace success.
A Call for Systemic Reform
Addressing the employability crisis demands a comprehensive overhaul. Strengthening the role of faculty and updating curricula to reflect industry needs are urgent priorities. The traditional Indian education model, which revered teachers as mentors, offers a potential framework for revitalising the system. By tackling these challenges, India can better prepare its graduates for a rapidly evolving job market. Failure to act risks widening the gap between education and employment, undermining the country’s ambition to harness its youthful workforce for economic growth.
