Archive · 27 Aug 2026
NITI Aayog Flags India’s Graduate Skills and Jobs Gap
NITI Aayog says many Indian students finish college without learning the skills employers need.
Only a small share of graduates work in jobs related to their degrees.
Many students study broad courses such as arts, science and commerce.
The report suggests adding practical subjects and workplace training to these courses.
It also says extra job training can lead to higher starting salaries.
Some families and students see vocational courses and ITIs as less valuable than traditional degrees.
NITI Aayog wants schools, colleges and companies to work together more closely.
It also says the number of young people not working, studying or training should not be counted as the unemployment rate.
Only 8.25% of Indian graduates work in roles matching their qualifications, according to NITI Aayog.
The report says 13% of graduates and 20.4% of graduate women are unemployed, above the 3.2% national rate.
NITI Aayog recommends industry-linked degrees, apprenticeships, workplace training and stronger focus on placements and income.
Additional skilling reportedly raises average starting pay from Rs 22,000 to Rs 29,000 per month for generic graduates.
The report identifies social stigma, limited information and outdated curricula as barriers to vocational education and employability.
- Who
- NITI Aayog, Indian higher-education institutions, students, workers and employers.
- What
- A NITI Aayog report identified a gap between graduates’ education and labour-market needs and recommended reforms to improve employability.
- When
- The report cites data from the Economic Survey 2024-25; the article also references Finance Minister Nirmala Sitharaman’s August 17 interview.
- Where
- India.
- Why
- Outdated curricula, limited workplace exposure, social stigma around vocational education and insufficient information about training are contributing to poor employment alignment.
- Qualification-job match
- Only 8.25% of graduates are employed in roles aligned with their qualifications.
- Graduate unemployment
- Graduate unemployment is reported at 13%, compared with a national unemployment rate of 3.2%.
- Graduate women’s unemployment
- 20.4% of graduate women are unemployed.
- Undergraduate enrolment
- About 3.4 crore students are enrolled in undergraduate programmes, including 1.13 crore in B.A. programmes.
- Starting salary without additional skilling
- Generic graduates without additional skilling earn an average starting salary of Rs 22,000 per month.
- Starting salary with additional skilling
- Generic graduates with additional skilling earn an average starting salary of Rs 29,000 per month.
- NEET population
- NITI Aayog reported 8.7 crore people aged 15 to 29, or 11% of the population outside the labour force, as NEET; it clarified that this is not an unemployment measure.