According to data released by the Ministry of Statistics, the unemployment rate in India tends to increase with higher education levels. This paradox reveals a critical gap between academic achievement and employability — a gap that requires urgent attention.
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As the admission season for colleges and universities begins, institutions across India are once again promoting their programmes under banners promising knowledge, transformation, and research excellence. This growth in enrolment at the undergraduate, postgraduate, and PhD levels suggests a dynamic academic landscape full of potential. Yet, beneath this expansion lies an important challenge: degrees are proliferating faster than meaningful job opportunities.
A gap that needs attention
According to data released by the Ministry of Statistics, the unemployment rate in India tends to increase with higher education levels. This paradox reveals a critical gap between academic achievement and employability — a gap that requires urgent attention.
This challenge is particularly acute in India’s vast network of non-elite institutions in Tier 2 and tier 3 colleges, where most students pursue BA, BCom, or BSc degrees and their corresponding master’s programmes. These institutions often face resource constraints and limited industry connections, operating with curricula that have not kept pace with the evolving job market. While elite colleges make headlines for placement challenges, the gradual erosion of employability in everyday colleges often goes unnoticed.
In many such institutions, instruction remains largely theoretical, with limited emphasis on real-world skills. For example, an English literature student might study Shakespearean tragedy yet miss out on learning practical skills such as writing professional emails. Similarly, an economics graduate may understand complex theories but struggle with everyday tools such as Excel. This disconnect means millions of educated young people find it difficult to translate their degrees into career opportunities.
This situation stems partly from a deeply entrenched academic culture that values scholarship and abstraction over practical application. Within many academic circles — even prestigious ones — higher education is often celebrated as an end in itself, while immediate employment is sometimes subtly undervalued. Postgraduate degrees and PhDs are frequently pursued not just for intellectual fulfilment but as a refuge from the job market, creating a cycle where many graduates end up teaching in the very colleges that perpetuate the same system.
It is important to recognise that successive governments have acknowledged this issue. Initiatives such as Skill India, Start-Up India, and the National Education Policy have pushed for skill development, vocational training, and entrepreneurship. However, the transformation remains incomplete. Many undergraduate and postgraduate programmes continue to emphasise rote learning over practical skills. While new courses in AI or entrepreneurship are being introduced, they often lack depth, and integration into the broader curriculum.
A broader societal challenge
Countries such as China and Japan have successfully aligned education with economic strategies by elevating technical and vocational education to a central role in workforce development. In India, vocational training is still often perceived as a fallback option, both within academia and society. This stigma limits the appeal and effectiveness of skill-based education, despite its vital role in economic empowerment.
This contradiction highlights a broader societal challenge: degrees are highly valued as symbols of upward mobility, but they increasingly fail to guarantee it. This is not a call to abandon liberal education or abstract learning — they remain essential for critical thinking and creativity. However, education must also provide tangible economic benefits. Degrees should offer pathways to agency and dignity, especially for students from smaller towns and under-resourced institutions.
A way forward lies in integrating practical skill modules — communication, digital literacy, budgeting, data analysis, hospitality, tailoring, and health services — into general degree programmes as core elements, not optional extras. Doctoral education should be diversified to prepare candidates for policy, analytics, consulting, development, and industry roles, not solely academia. Research remains vital, but it must be pursued by those inclined towards it.
Finally, the widespread aspiration for government jobs reflects the limited opportunities graduates currently perceive. While these roles remain important, expanding private sector and entrepreneurial pathways through improved employability will offer youth a broader range of options. Enhancing skills and opportunities can reduce the over-dependence on competitive exams. India’s growing economy demands an education system that not just enrols students, but equips students with skills. Viewing education as a social contract that guarantees a meaningful connection between learning and livelihood is essential.
Gourishankar S. Hiremath teaches Economics at IIT Kharagpur. Views are personal
Published – May 31, 2025 01:18 am IST