Graduate degrees not translating into jobs: Niti Aayog flags skills and industry exposure gap

Only 8.25% of Indian graduates are employed in jobs that match their qualifications, according to a Niti Aayog paper that highlights the growing mismatch between higher education and industry requirements.

The paper, "Reimagining Skilling for Viksit Bharat@2047," said many graduates enter the workforce without adequate practical experience, industry exposure and job-ready skills.

It called for a shift from degree-focused education toward flexible learning and training pathways linked to employment.

The report said conventional degree programs such as BA, BCom and BSc often have limited links with employment. Students pursuing these programs may need additional workplace skills to secure even entry-level jobs.

Around 3.4 crore students are enrolled in undergraduate programs, including nearly 1.13 crore pursuing BA.

Combined enrollment in BA, BSc and BCom exceeds two crore, with the report noting that government job eligibility is among the factors influencing students to pursue these degrees.

Practical exposure remains a major concern. About 80% of learners cited inadequate practical experience and industry exposure as significant gaps, while students also raised concerns about skills development and interview preparation.

The report's findings come as competition for government employment remains high. Data cited by Niti Aayog showed that around 1.86 crore applications were received for approximately 55,000 posts between November 2024 and July 2025.

Niti Aayog recommended closer links between education and employers through vocational education in schools, greater industry participation in higher education, outcome-linked skilling programs, and wider access to apprenticeships.

It proposed a "Reimagined Skilling Architecture" based on five reforms: integrating skills into schools, strengthening public-private partnerships in technical and higher education, developing outcome-linked, industry-backed programs, expanding apprenticeships and improving career guidance and perceptions around skills-based pathways.

The paper also called for a Digital Skills Passport, outcome-based financing, operationalization of the National Credit Framework (NCrF), and skills-first policies and infrastructure.

The proposed framework seeks to make learning more flexible and portable, allowing students and workers to develop skills across education, training and employment.

Apprenticeships and industry-linked programs would provide greater practical exposure and improve job readiness.

With India's working-age population continuing to expand, Niti Aayog said increasing the number of graduates alone would not be sufficient. The report stressed the need to ensure that degrees lead to usable skills, meaningful employment and stronger alignment with industry demand.