Can India’s Dream Career Bounce Back?

About a decade ago, if you asked Indian parents what they wanted their kids to become, the answer was almost always the same, engineers or doctors. Let’s be real, many of us gave in to that pressure too, thanks to family expectations or peer influence. For some, the interest was genuine. But for many others, engineering simply became the go-to option after Class 12 if you scored well in science. It was seen as the “safe” path to land a job. Plus, the IT boom made it look even more attractive, with fat paychecks and chances to go abroad. But soon, the field got overcrowded. Colleges mushroomed everywhere, churning out engineering degrees by the truckload. Even the IITs, once seen as the holy grail of engineering education, are now facing an unprecedented placement crisis. Today, India produces nearly 1.5 million engineers every year.

Dr Lalit Narayan, VP & Sr. Dean - Academic Affairs, Medhavi Skills University, rightly pointed out that engineering was a passport to safe jobs in the 1990s and early 2000s during the IT boom. This resulted in the proliferation of institutions from top IITs and NITs to private universities numbering in the thousands and independent colleges. However, this accelerated growth has led to a demand–supply mismatch. “Though millions pass out every year, hardly 20–25% are considered employable in their core streams without further training, as emphasized by NASSCOM and AICTE. Most colleges still exist as business enterprises, with outdated curricula that do not keep pace with the requirements of new sectors like AI, data science, green technology, and electric mobility. The surplus and uneven quality have watered down the value of an engineering degree,” he said.

According to the Unstop Talent Report 2025, a staggering 83% of engineering school graduates and 46% of business school graduates are still without a job or even an internship offer. That’s an alarming number by any standard. Adding to the concern, a Parliamentary Standing Committee report flagged an “unusual decline” in placements across 23 IITs—showing more than a 10 percentage point drop between 2021-22 and 2023-24. This isn’t just a red flag for anxious parents pushing their kids toward engineering or students chasing the dream of an IIT seat. It’s a wake-up call for educationists and policymakers as well. The problem is bigger than individual choices, it’s about the system itself. “At present, we are producing more degrees than employable engineers due to the industry–academia gap. The distinction lies in how much practical, industry-ready capability is built during those four years. Unless curricula, teaching models, and evaluation systems shift from theory-heavy learning to real-world problem solving, the employability gap will persist. However, with focused collaboration and the right changes, we can ensure that the next generation of engineering graduates has the skills and confidence to create solutions from day one,” said Sachin Alug, CEO, NLB Services. He further mentioned that employability in engineering is going to be much more than just about technical knowledge. Skills in AI, semiconductors, green energy, EVs, advanced manufacturing, and cybersecurity will be in high demand. “But equally, problem-solving, data fluency, and the ability to work across disciplines will set engineers apart. So, the future engineer in India is not just a specialist, but someone who can adapt, collaborate, and keep learning,” said Alug.

Reports suggest that while lakhs of students continue to enroll in engineering programmes every year, only about 43% actually land jobs after graduation. The root cause is clear: a glaring mismatch between what colleges teach and what the industry really needs. Traditional engineering curricula often focus heavily on theory, with little emphasis on practical skills, live projects, or industry exposure. On the other hand, companies are hungry for talent in sunrise sectors - AI, semiconductors, green energy, electric vehicles, advanced manufacturing. These are the fields shaping the future of technology and economy, yet most engineering graduates are ill-equipped to enter them. This gap is widening every year. Dr Nipun Sharma, CEO, TeamLease Degree Apprenticeship, mentioned that the issue of industry-academia skill gap needs to be tackled holistically. He suggests that the revolutionary and upcoming areas like AI, semiconductor, etc., need enhanced curricula and trainers, which can be achieved through academia-industry collaborations for curriculum realignment that emphasises hands-on training. “The other aspect of this skill gap lies in the missing soft-skills. Leadership attributes, discipline, verbal and communication skills, all need to be addressed and fixed through systematic training,” he said. In fact, Dr Sharma also highlights the crucial role of apprenticeships, vocational skilling and industry tie-ups in bridging this gap. “The goal is to create a skilled and sustainable workforce. This can be done through apprenticeships, vocational skilling, and industry tie-ups - which will all work towards enhancing youth employability. Today, skills and qualifications are becoming inextricable, and lifelong learning continues to be the norm in any industry. The policies to bridge the gap between industry and skilled workforce is already in place. The need of the hour is for proper execution at the ground level where the youth, employers, and academia come together in a unique collaborative effort to enhance the employability of engineers,” he said.

As Dr Narayan pointed out, engineering was once the ultimate dream degree in India. Today, it stands at a crossroads. With the right focus on research, skills, and industry linkages, though, it can still reclaim its place as the driver of India’s growth and innovation story.