Every year, India produces around 1.5 million engineering graduates, a figure suggesting one of the largest technical talent pools in the world to support the nation’s technology-driven economy. Yet, employers continue to voice frustration: A significant portion of these graduates are not “job-ready”. The paradox raises a question:
Even as industries undergo digital and technological transformation, employers report a shortage of job-ready engineers. Nearly 83 percent of engineering graduates fail to secure relevant jobs or internships upon graduation. The challenge with today’s graduates is not knowledge or degree, but a lack of employability. This is called the employability gap.
The employability gap is multi-dimensional. India’s engineering curriculum has expanded rapidly in quantity but not necessarily in alignment with industry needs. Meanwhile, the nature of work in India is evolving. Employers increasingly value problem-solving ability, adaptability and digital fluency over textbook knowledge, traits that traditional academic programmes rarely prioritise.
India’s engineering employability rate stands at about 72 percent in 2025, yet only a small percentage of graduates find jobs aligned with their core disciplines. Most programmes still follow curricula that have not kept pace with industry evolution. Areas such as artificial intelligence (AI), data analytics, semiconductors, the Internet of Things (IoT), and advanced manufacturing receive minimal attention. Students graduate with strong theoretical foundations but limited applied capabilities like design thinking, problem-solving and data literacy; the very skills employers value most.
The academic-practice mismatch creates an abrupt transition from classroom to workplace. For employers, this leads to longer onboarding, costly retraining, and slower productivity.
Consider the India Semiconductor Mission, launched in 2021 with an investment of ₹76,000 crore and the potential to generate 1 million jobs by 2026. Success depends on sectors like chip design, fabrication, and assembly, testing, marking, and packaging. Yet, reports project a shortfall of nearly 0.25 to 0.3 million skilled semiconductor professionals by 2027. The challenge is clear: While the industry demands specialised engineers and technicians, the current workforce remains unprepared.
This gap is not unique to semiconductors. Across IT, manufacturing and emerging tech, companies report that graduates often require months of additional training before becoming productive. Both TCS and Infosys operate some of the world’s largest training centres just to make fresh engineers employable, a reflection of how far education remains from industry reality.
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Employability today goes far beyond technical qualifications. Companies are looking for engineers who can adapt, collaborate, and continuously learn. While core technical knowledge remains vital, employers increasingly assess candidates on communication, teamwork and problem-solving in real time. Recent hiring patterns reflect this shift. Nearly 70 percent of employers plan to hire freshers in 2025, but 73 percent say they prioritise candidates with hands-on experience over college pedigree. Graduates who have completed live projects or structured apprenticeships are lower-risk hires as they understand workplace systems, project cycles, and professional discipline from day one.
Closing India’s employability gap requires more than curricular reform; it demands a shift in mindset. Education must evolve from a one-time academic pursuit to a continuous, experiential journey. Apprenticeships exemplify this approach, allowing students to earn while they learn and navigate modern workplaces while staying industry-relevant. In high-growth sectors like semiconductors, renewable energy and manufacturing, apprenticeship stipends now rival, and sometimes surpass, entry-level IT salaries, reflecting the premium on applied technical expertise. Evidence shows that over 80 percent of apprentices successfully transition into formal roles, demonstrating the practical impact of these programmes. This has prompted employers to rethink strategies:
• Work-based learning and apprenticeships: Companies are investing in structured internships, co-op programmes, and degree-apprenticeship models to integrate learning with on-the-job experience.
• Industry-academia collaboration: Organisations collaborate directly with universities to co-create curricula focusing on domain-specific tools, software and methodologies.
• Campus recruitment reimagined: Hiring is no longer about grades alone. Employers assess problem-solving aptitude, collaboration skills and entrepreneurial mindset during recruitment drives.
In Germany and Switzerland, structured work-based models keep youth unemployment below 5 percent. India, by contrast, faces a 15 percent youth unemployment rate despite producing lakhs of graduates each year. The lesson is clear: Execution matters.
With recent geopolitical shifts impacting H-1B visas, the rise of global capability centres and renewables, and the rapid expansion of manufacturing, especially in electric vehicles, semiconductors, and electronics, India stands at a pivotal moment of opportunity for engineers. India’s engineering employability challenge is as much about mindset as it is about skill. The traditional ‘learn first, work later’ approach no longer fits an economy defined by rapid innovation and evolving technologies. Embedding work-based learning and apprenticeships within mainstream education can unlock India’s true talent potential. This model cultivates not just employable graduates, but adaptive professionals, who can innovate, evolve and contribute from day one. If India can align its education system with its economic ambitions, the 1.5 million engineers it produces each year will no longer be a statistic. They will be the architects of the nation’s next industrial and technological leap.
The author is the CEO of TeamLease Degree Apprenticeship
First Published: Nov 13, 2025, 16:35
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