Only 8.25% graduates land jobs matching their qualifications: NITI Aayog
What's the story
The NITI Aayog has raised concerns about the high unemployment rate among graduates in India, which it says is much higher than the national average. The think tank's report "Reimagining Skilling for Viksit Bharat" highlights that over-reliance on generic degrees such as Bachelor of Arts (BA), Bachelor of Science (B.Sc), and Bachelor of Commerce (B.Com) is a major contributor to this issue. It says that "only 8.25% of graduates are employed in roles aligned to their qualifications."
Education-employment gap
Educated unemployment high among graduates
The report stresses a "fundamental disconnect" between India's higher education system and labor market demands.
It says, "Curricula in most institutions remain outdated and misaligned with evolving industry needs." This results in degrees that don't guarantee employability.
The NITI Aayog also pointed out that educated unemployment is high, with 13% of all graduates unemployed and 20.4% among graduate women, much higher than the national unemployment rate of 3.2%.
NEET clarification
8.7 crore youth in NEET category
According to the Indian Express, the report also highlights that 8.7 crore people aged 15-29 years are in the NEET (Not in Education, Employment or Training) category.
However, the NITI Aayog on Tuesday clarified that "the category of NEET...refers to those not seeking employment...therefore, it cannot be read as a measure of joblessness."
The report also addresses the social stigma against vocational skilling and alternative educational pathways in India.
Educational reform
Career decisions often based on examination scores
The NITI Aayog stated that vocational skills and alternative educational pathways suffer from a deep-seated social stigma that actively discourages youth from pursuing technical training, Industrial Training Institutes (ITIs), and diploma programs, widely perceived as "second-tier" pathways.
The report emphasizes that career decisions are often based on examination scores, family preferences, or perceived costs rather than aptitude or long-term career possibilities.
"In the absence of visible success stories from similar socio-economic backgrounds, vocational pathways remain undervalued from the outset."
Course redesign
Report suggests redesigning generic university courses
The report suggests redesigning generic university courses into industry-aligned specializations.
It also recommends scaling Apprenticeship Embedded Degree Programs (AEDP) and Work-Integrated Degree Programs (WIDP).
"Establish greenfield PPP skilling universities...place dedicated PPP skilling hubs inside existing public campuses, and implement brownfield college reforms partnering with industry to co-design academic tracks Provide academic autonomy (to update trade offerings and courses based on local demand) and administrative autonomy (to contract trainers and simplify tool procurement) to ITIs under robust PPP governance frameworks."