Only 45% of Indian graduates are job-ready, says a 2023 report. Discover the skills gap and what must change in India’s education-to-employment system.
Despite holding shiny degrees, a significant number of Indian graduates are finding themselves unprepared for today’s job market — and it’s not because they aren’t smart or hardworking. It’s because the skills they’ve acquired during college often don’t match what employers actually need.
This was the central finding of a new report titled “India’s Graduate Skill Index 2023” by Mercer | Mettl, a talent assessment firm. The study, which examined data from 2,500 colleges and 4.4 lakh students, found that only 45% of Indian graduates applying for jobs are truly employable — meaning they have the skills to meet current industry demands.
And here’s the kicker: students are actually more job-ready for non-technical roles than for the very technical jobs many of them are trained for.
More Degrees, Fewer Skills?
The report paints a complex picture. While about 53% of graduates are considered fit for non-technical roles, just 44% make the cut for technical jobs — roles that are often considered the backbone of India’s growing economy.
So what’s the issue? It’s not necessarily the students — it’s the system.
India’s higher education often prioritizes textbook knowledge over practical training. Students are tested on what they can memorize, not how they solve real-world problems. As a result, many graduate with a degree in hand but without the confidence or ability to meet workplace expectations — especially in fields like AI, data science, and software development.
Even more concerning: this gap exists across college tiers. Whether students graduate from a Tier 1, Tier 2, or Tier 3 college, employability numbers are strikingly similar — 46%, 44%, and 43% respectively — showing that the problem is systemic, not isolated.
A Closer Look at the Skills Gap
The Mercer | Mettl report breaks down where graduates are falling short:
Technical Skills
- Applied Mathematics fares well, with a 72% employability rate.
- AI/ML (Artificial Intelligence & Machine Learning) — considered a booming field — sees only 48% of graduates job-ready.
- Data Science & Analysis struggles, with just 39% employability.
Non-Technical Skills
- MS Office proficiency is strong at 61%.
- Accounting and numerical ability are also high at 60% and 57%, respectively.
- But in project management, a key non-technical skill, only 23% are employable — suggesting a gap in leadership, communication, and coordination training.
What’s Going Wrong?
The report identifies several reasons for India’s growing degree-vs-skill gap:
- Outdated Curriculum:
Most college programs are not aligned with industry needs. Students may know theory, but not how to apply it. - Soft Skills Neglected:
Communication, teamwork, leadership — these skills are vital at work, but rarely taught or assessed in classrooms. - Same Problem, Different Colleges:
The gap in skills isn’t limited to rural or underfunded colleges. Even top-tier institutions are producing graduates who struggle with job readiness. - Technical Training Falls Short:
Despite the hype around AI, data science, and tech jobs, most graduates in these fields aren’t getting the kind of hands-on, practical training required to succeed.
What Needs to Change?
The takeaway is clear: a degree alone is no longer a ticket to a good job. If India wants its graduates to thrive, colleges need to evolve — fast.
- Curriculums must be updated in partnership with industry experts.
- Internships and real-world projects should become mandatory.
- Soft skills training must be taken seriously.
- And platforms like MOOCs (Massive Open Online Courses) should be integrated for continuous learning.
India is home to one of the world’s largest youth populations — and its biggest strength lies in its students. But to truly unleash their potential, the focus must shift from collecting certificates to building capabilities.
Because at the end of the day, it’s not just about getting a degree — it’s about being ready to deliver in the real world.
Also Read: IIM Jammu Earns Dual Global Accreditations from BGA and EFMD
School prayers should be reviewed to remain secular: Kerala Education Minister