Context: India’s employability among graduates is expected to rise by 7 percent, reaching 54.81 percent in 2025, according to the ‘India Skills Report 2025.’

About India Skills Report 2025

• It is prepared by the industry body Confederation of Indian Industries (CII) in collaboration with Wheebox (a talent assessment agency) and All India Council for Technical Education (AICTE).

• It is based on data from over 6.5 lakh candidates who participated in the Global Employability Test (G.E.T.) across India, alongside insights from over 1,000 corporations across 15 diverse industries.

Key-takeaways from the Report

• Employability of Indian Graduates: 55% of Indian graduates are expected to be globally employable by 2025, an increase from 51.2% in 2024. This shows a positive trend in the country’s ability to prepare graduates for international job markets.

• The employability rate of Indian graduates has increased by 7% this year, reaching 54.81% in 2025, compared to 51.25% in 2024. This is attributed to government initiatives, such as Skill India Mission and NEP 2020, and institutional efforts to align education with industry needs.

• Over the last decade, employability among Indian graduates has risen by 17 per cent, from 33 per cent to over 50 per cent, reflecting the nation’s commitment to creating a future-ready workforce for a rapidly changing global economy.

• The report also highlighted how emerging technologies, including artificial intelligence (AI), cloud computing, and automation, are reshaping job roles and generating new opportunities.

• Additionally, digital nomadism and hybrid work models have enabled Indian talent to contribute to the global workforce without geographical limitations.This trend, the report noted, could contribute $500 billion to the global economy by 2030, with India at its core.

• India’s diverse talent pool has established it as a global leader in IT, engineering, and healthcare, while expertise in green energy, AI, and robotics continues to grow.

• In other sectors, the $2.5 trillion construction industry demands engineers and planners for housing and infrastructure, while the financial sector will require 400,000 professionals for fintech and green finance roles by 2030.

• Most Employable Graduates:

• Management graduates have the highest employability at 78%.

• Engineering graduates follow with 71.5% employability.

• MCA (Master of Computer Applications) graduates have 71% employability.

• Science graduates have 58% employability.

• Regional Trends in Employability: Kerala has an employability rate of 71%, ranking 5th among all Indian states. The states ahead of Kerala are Maharashtra, Delhi, Karnataka, and Andhra Pradesh. Maharashtra, Karnataka, and Delhi are emerging as major hubs for skilled talent. Pune, Bengaluru, and Mumbai are leading cities that provide a large pool of employable workers.

• Gender Disparity: The employability rate for men is expected to rise to 53.5% in 2025, up from 51.8% in 2024. However, women’s employability is projected to decline from 50.9% in 2024 to 47.5% in 2025, highlighting a gender gap that needs attention.

• Internship Interest: 93% of students surveyed expressed interest in internships, indicating a strong desire for practical work experience alongside academic learning.

• Hiring Intent for 2025: The report also indicates a 9.8% hiring intent for FY 2026 across industries. Global capability centres, heavy engineering, and banking sectors have the highest hiring intent, with 12% in these sectors.

• India’s Global Talent Mobility: India is emerging as a key player in global talent mobility, with a focus on quality skill training to improve the employability of graduates. The skilled Indian workforce is contributing to sectors like technology, healthcare, renewable energy, and AI, driving global innovation and economic growth.

Strategic Vision for 2030: The report outlines strategies to strengthen India’s talent pool, such as:

• Expanding vocational training in high-demand fields like AI, cybersecurity, and green energy.

• Promoting cross-border collaborations to address skill shortages in countries with aging populations.

• Integrating technology (AI, automation) in education and skill assessments.

• Fostering diversity and inclusion, with an emphasis on improving female participation in the workforce.

Government Initiatives for Skill Development

• Skill India Mission (SIM): Under the mission the Ministry of Skill Development and Entrepreneurship (MSDE) delivers skill, re-skill and up-skill training through an extensive network of skill development centres/colleges/institutes etc. under various schemes, viz.

• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): PMKVY Scheme is for imparting skill development training through Short-Term Training (STT) and Up-skilling and Re-skilling through Recognition of Prior Learning (RPL) to youth across the country including rural areas.

• Jan Shikshan Sansthan (JSS) Scheme: The main target of the JSS is to impart vocational skills to the non-literates, neo-literates and the persons having rudimentary level of education and school dropouts upto 12th standard in the age group of 15-45 years, with due age relaxation in case of “Divyangjan” and other deserving cases. Priority is given to Women, SC, ST, OBC and Minorities in the rural areas and urban low-income areas.

• National Apprenticeship Promotion Scheme (NAPS): This Scheme is for promoting apprenticeship training and increasing the engagement of apprentices by providing financial support to industrial establishments undertaking apprenticeship programme under the Apprentices Act, 1961. Training consists of Basic Training and On-the-Job Training / Practical Training at workplace in the industry. A total of 42453 establishments engaged the apprentices across the country.

• Craftsmen Training Scheme (CTS): This scheme provides long-term training through Industrial Training Institutes (ITIs) across the country. The ITIs offer a range of vocational/skill training courses covering a large number of economic sectors with an objective to provide skilled workforce to the industry as well as self-employment of youth.

Apart from MSDE, more than 20 Central Ministries are implementing Skilling/ Upskilling training programmes through various schemes, such as

1. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)

2. Rural Self Employment Training Institutes (RSETI) under Ministry of Rural Development

3. Deen Dayal Antyodaya Yojana – National Urban Livelihood Mission (NULM) under Ministry of Housing and Urban Affairs etc.

Other missions:

• TEJAS Skilling Project

• SANKALP Scheme

Confederation of Indian Industries (CII)

• CII is a non-government, not-for-profit, industry led and industry managed organisation, playing a proactive role in India’s development process. 

Founded over 114 years ago, it is India’s premier business association, with a direct membership of over 7500 organisations from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 83,000 companies from around 380 national and regional sectoral associations.

Road Ahead

• Over the last decade, employability among Indian graduates has risen by 17 per cent, from 33 per cent to over 50 per cent, reflecting the nation’s commitment to creating a future-ready workforce for a rapidly changing global economy.

• This decade belongs to India as a leader in global talent mobility. This decade must be focused on quality of skills training that shall make a stark difference for international mobility. Long-term and internally certified skill programs with embedded language training will be the winning bet to provide early work opportunities. The skilled and certified talent from India provides a unique advantage and leverage to India.