Only 8.25% of graduates are employed in roles that match their qualifications.
The report highlights limited practical experience and industry exposure.
Niti Aayog recommends stronger vocational education, industry-linked programmes, apprenticeships, a Digital Skills Passport and implementation of the National Credit Framework.
India is producing more graduates, but only 8.25% are employed in jobs that match their qualifications, according to a NITI Aayog paper on the country’s skilling challenge. The report, Reimagining Skilling for Viksit Bharat@2047, highlights a widening gap between academic degrees and workplace requirements, calling for greater industry exposure, practical training and flexible pathways that improve employment prospects.
NITI Aayog Highlights Gap Between Degrees And Jobs
The paper points to a disconnect between what students learn and the skills employers need. It says generic degree programmes such as BA, BCom and BSc often have weak links with employment, leaving many graduates in need of additional workplace skills even for entry-level jobs.
Of around 3.4 crore students enrolled in undergraduate programmes, nearly 1.13 crore are pursuing BA degrees, while enrolment across BA, BSc and BCom exceeds two crore. Many students also pursue these degrees because they provide eligibility for government recruitment, the report notes.
The lack of practical experience remains a major concern, with around 80% of learners citing inadequate industry exposure as a key gap. Students also reported shortcomings in job-related skills and interview preparation.
The findings come amid intense competition for government jobs. The report cites data showing that around 1.86 crore applications were received for approximately 55,000 posts between November 2024 and July 2025.
Report Calls For Skills-First Education
NITI Aayog has called for stronger links between education, skilling and industry. Its proposed “Reimagined Skilling Architecture” focuses on integrating skills into school education, expanding industry participation in technical and higher education, creating outcome-linked training programmes, widening access to apprenticeships and improving career guidance.
The report also recommends measures such as a Digital Skills Passport, outcome-based financing, operationalising the National Credit Framework and developing skills-first policies and infrastructure.
The proposed reforms aim to make learning more flexible and allow students and workers to build recognised skills across education, training and employment.
With India’s working-age population continuing to grow, the report argues that increasing the number of graduates alone will not solve the employment challenge. The focus, it says, must shift towards ensuring that education translates into practical skills, meaningful jobs and opportunities aligned with employers’ needs.
