Mercer | Mettl has unveiled India’s Graduate Skill Index 2025, a groundbreaking study offering an in-depth analysis of graduate employability in the face of AI and automation advancements. The research, based on data from over 2,700 campuses and one million learners, paints a mixed picture of both emerging opportunities and persistent skill deficiencies.
The report indicates a marginal decline in overall employability, dropping from 44.3% in 2023 to 42.6% in 2025. This decline is primarily attributed to reduced employability for non-technical roles, highlighting the growing demand for specialised skills in an AI-driven job market. The findings also underscore the importance of strengthening foundational skills across various disciplines.
Key Insights from India’s Graduate Skill Index 2025
– AI & ML Proficiency a Bright Spot: Indian graduates show strong aptitude for AI & ML roles, boasting a 46.1% employability rate—the highest among all technical roles assessed.
– Soft Skills Critical, Creativity Lagging: While 50% of graduates possess essential soft skills for AI/GenAI collaboration, creativity remains an area for improvement, with only 44.3% employability. Key strengths include communication (55.1%), critical thinking (54.6%), and leadership (54.2%).
– Learning Agility Essential for the Future: Graduates with strong learning agility exhibit a 46% employability rate, underscoring the importance of adaptability in the evolving tech landscape.
– Tier 1 Colleges Maintain an Edge, But Talent Exists Across Tiers: Graduates from Tier 1 institutions lead in employability (48.4%), followed by Tier 2 (46.1%) and Tier 3 (43.4%). Tier 2 colleges excel in UI/UX developer roles (58.3% employability).
– Regional Disparities Persist: Delhi leads in employability (53.4%), followed by Himachal Pradesh and Punjab (51.1%). Meanwhile, Uttarakhand and Jharkhand also perform well (50% and 49.6% respectively). Targeted initiatives are needed to bridge regional skill gaps.
– Demand for Financial and Sales Roles: Financial analysts (45.4%) and sales/business development professionals (45.3%) have the highest non-technical employability.
– Gender Parity in Technical Fields: Equal employability for male and female graduates is observed in AI & ML and data science; however, disparities persist in fields like software testing.
Commenting on the report, Siddhartha Gupta, President of Mercer India, stated: “The Mercer | Mettl India’s Graduate Skill Index 2025 provides a comprehensive analysis of job readiness among Indian graduates, based on an extensive evaluation of over one million students across 2,800 skill sets. The employability rate for Indian graduates stands at 42.6% in 2025, reflecting a slight decline from 44.3% in 2023, largely due to evolving industry expectations. However, there has been significant progress in employability for technical roles, as colleges and students focus on developing market-relevant skills. On the other hand, the development of certain non-technical and soft skills presents a more complex learning curve, often requiring additional time to cultivate. This data clearly underscores these trends.”
