NITI Aayog has flagged a deep mismatch between India’s degrees and its job market in a new report titled ‘Reimagining Skilling for Viksit Bharat’, released on Saturday. Citing the Economic Survey 2024-25, the think tank said only 8.25% of graduates are employed in roles aligned to their qualifications, while over 90% work in jobs unrelated to what they studied.
What the report found
The report warns that an over-reliance on generic degrees such as B.A., B.Sc. and B.Com. — which seldom lead directly to jobs — is worsening graduate unemployment. Of 3.4 crore students enrolled in undergraduate programmes, 1.13 crore are in B.A. alone, and combined enrolment across B.A., B.Sc. and B.Com. exceeds 2 crore.
- Graduate unemployment stands at 13%, and 20.4% for graduate women — far above the national rate of 3.2%.
- 8.7 crore individuals aged 15-29 (about 11% of the population outside the labour force) fall under the NEET category (Not in Education, Employment or Training).
- 47% of women, 43% of youth NEETs, 36% of higher-education students, 52% of formal workers and 55% of informal workers do not pursue skilling.
NEET clarification
In a clarification issued on Tuesday, NITI Aayog said the NEET figure refers to those not seeking employment and “cannot be read as a measure of joblessness or as an addition to the unemployment rate.” The unemployed, it said, form an entirely separate category drawn from a different population base.
The cost of skipping skills
Salary data from a Boston Consulting Group survey cited in the report shows a generic undergraduate without skilling earns an average starting salary of Rs 22,000 a month, versus Rs 29,000 for one with skilling. Over 10 years, that Rs 7,000 monthly gap can compound to an income difference of about Rs 9.7 lakh.
Awareness of government schemes remains low
The report noted that awareness of apprenticeships, scholarships and government skilling schemes remains poor — including the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and the PM Internship Scheme. It added that vocational routes, ITIs and diploma programmes still carry a social stigma as “second-tier” pathways.
What NITI Aayog recommends
The think tank called for a shift from supply-driven skilling to demand-driven, outcome-linked and industry-backed models. Key suggestions include redesigning generic degrees into applied specialisations such as B.A. Hospitality, B.Sc. Applied Technology and B.Com. Analytics; scaling Apprenticeship Embedded Degree Programmes (AEDP) and Work-Integrated Degree Programmes (WIDP); and establishing public-private partnership (PPP) skilling universities like the World Skill Center in Odisha.
Finance Minister Nirmala Sitharaman, in a recent interview, echoed the concern, saying India’s education system produces degree-holders who are “not ready yet” to work or start a venture. The push comes as the government renews its focus on aligning skilling with the goal of a Viksit Bharat by 2047.
These figures are drawn from NITI Aayog’s official report and the Economic Survey 2024-25; readers should consult the full report for detailed methodology.