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The Hindu
11-06-2025
- Business
- The Hindu
India's employability crisis: Why degrees aren't enough for today's job market
Across India, academic milestones often arrive with high expectations and critical decisions. As students progress through the education system, whether completing school or preparing for college, they and their families are faced with choices that influence not just career paths, but also financial security, personal aspirations and social identity. In the midst of this transition, most conversations revolve around what to study next. However, there is a deeper and more urgent concern that often goes unnoticed. The real challenge India is grappling with is not just unemployment. It is the issue of employability. This concern is not limited to individuals or households; it affects industries, educational institutions and the nation's economic future as a whole. Let's look at the numbers. Every year, over 1.5 crore graduates enter India's job market. Yet the India Skills Report 2024 reveals that only 46% of them are considered employable by industry standards. The Centre for Monitoring Indian Economy (CMIE) reports youth unemployment standing at 16 percent, even as companies struggle to find candidates with the right skills. Clearly, the problem is not just a lack of jobs; it is a mismatch between what education produces and what the market needs. This mismatch is especially risky given India's youth bulge. With over 50 percent of the population under 25 and 65 percent under 35, India has one of the world's largest pools of working-age people. This presents a potential 'demographic dividend' that could propel the country toward becoming the world's third-largest economy by 2028. But if these young people are undertrained or underprepared, they risk becoming a demographic liability instead, fueling underemployment, frustration and even social unrest. Why the mismatch Why is this happening? Part of the issue is the rigidity of educational choices. For decades, students have followed well-worn academic paths: after Class 10, over 55% opt for Science (usually aiming for engineering or medicine), around 25–30% go into Commerce ( CA, BBA), and only 10–15% choose Humanities. After Class 12, most continue into familiar undergraduate programs, whether or not these truly match their abilities or interests. However, the fastest-growing job opportunities today are in emerging sectors: Artificial Intelligence, cloud computing, cybersecurity, fintech, biotechnology, digital marketing, green energy and agri-tech. According to National Association of Software and Service Companies (NASSCOM), India is expected to create 90 lakh new jobs in digital and emerging technologies by 2030. Yet fewer than 20 percent of students are actively preparing for these fields, partly because schools and colleges are still stuck in rote learning and outdated curricula. For instance, consider a student who graduates with a first-class degree in electronics engineering but struggles to find a job. It is only after completing a short-term certification in data analytics, a subject never covered during college, that they manage to secure a position at a tech startup. Stories like this reflect a broader reality and highlight the urgent need for India's educational institutions to move beyond textbooks and degrees, incorporating practical skills, internships, and industry exposure into the core of learning. The National Education Policy (NEP) 2020 emphasizes skill development and greater flexibility in learning pathways, aiming to better prepare students for real-world careers. However, its implementation has been uneven, particularly outside major cities. For many students, access to professional career counseling is limited or entirely absent. As a result, choices are often guided by family expectations or societal norms rather than a clear understanding of individual strengths, interests, or market trends. Unless students and institutions actively respond to the changing demands of the workforce, the promise of the NEP may remain unrealized. Studies by McKinsey & Company suggest that improving employability by just 10 to 15 percent could add between $200 - $250 billion to India's GDP over the next decade. At the same time, global reports from the World Economic Forum highlight that countries such as Japan, Germany, and South Korea are facing significant labor shortages due to aging populations. This creates a unique opportunity for India's young workforce to become a major exporter of skilled talent, but only if they are equipped with the right skills and training. To bridge the gap, India needs a coordinated national push. Colleges must build stronger industry partnerships for apprenticeships and problem-oriented projects. Platforms like Skill India and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) must expand their reach, ensuring even rural students can access cutting-edge training. Families need to embrace lifelong learning, where upskilling and reskilling through short courses, online certifications, or modular programs, even for mid-career professionals. Strategy for students and parents For students at this crossroads, the key is to think beyond marks. Ask yourself: What are you passionate about? Where are the new opportunities? A student interested in Biology doesn't have to limit themselves to Medicine; they could explore Biotechnology, genetic research, health informatics, etc. Someone good at Math doesn't have to stick to Engineering; they could venture into data science, AI, quantitative finance, etc. And for parents: support your child's curiosity and adaptability. The most successful careers of tomorrow may be in fields that didn't even exist ten years ago. As the results season sweeps across India, let's widen the national conversation. It's not just about who scored how much, or who gets into which college. It's about whether we are preparing a generation that is ready, ready not just to find a job, but to shape the future of India. Because the real question isn't just 'What will you do after Class 10 or 12 or a degree?' It's 'How will you help build the India of tomorrow?
Indian Express
09-06-2025
- Business
- Indian Express
Declining poverty, and the data that shows it
Poverty and inequality estimation in India have been subjects of considerable debate, especially in recent years with the economy experiencing several shocks. The great India poverty debate has, in fact, been marked by significant differences of opinion on the household survey data which forms the basis of estimation, the construction of the poverty lines, and on the trends over the decades. The debate has been particularly heated in the absence of data — the government did not release the consumption expenditure survey data for 2017-18 due to 'data quality issues'. This led to several studies trying to estimate poverty levels in India by drawing on alternate data sources such as the Periodic Labour Force Surveys and the CMIE data. Recently, the government has attempted to fill the data gap by conducting two rounds of household consumption expenditure surveys for 2022-23 and 2023-24. These surveys now allow for an examination of the trends in poverty over the past decade or so. The decline has been significant. Extreme poverty in India is estimated to have declined from 27.1 per cent in 2011-12 to 5.3 per cent in 2022-23 as per the latest World Bank data reported in this paper. This steep decline has occurred even as the Bank has raised the threshold for measuring extreme poverty to $3 a day from $2.15 earlier. To put these figures in perspective — the number of people living in extreme poverty in India fell from 344.47 million to 75.24 million over this period. While there has been some concern over the comparability of the consumption expenditure surveys carried out in 2011-12 and 2022-23 due to changes in the manner in which the recent survey was carried out and its sampling design, this is a steep decline. Moreover, even considering the poverty line for lower-middle income countries of $4.2 per day (revised upwards from $3.65), the poverty ratio in India fell from 57.7 per cent in 2011-12 to 23.9 per cent in 2022-23. The decline appears to have continued in the year thereafter. Earlier, Niti Aayog had estimated that multidimensional poverty in India had also registered a steep decline — falling from 55.34 per cent in 2005-06 to 24.85 per cent in 2015-16 to 14.96 per cent in 2019-21. This estimate of poverty was based on 12 indicators and drew on data from the National Family Healthy Surveys. Alongside these poverty estimates, the World Bank has also estimated that inequality in India, based on measures such as the Gini and Theil indices, did fall between 2011 and 2022. However, these estimates of inequality are based on the household consumption expenditure data, which typically tends to be lower than estimates based on household income. This is not just an academic exercise. The data from the latest rounds of the consumption expenditure surveys as well as the labour force surveys must serve as a valuable input for policy, informing the choices of policymakers.
The Hindu
05-06-2025
- Business
- The Hindu
Corporate India's net profit grew 15.5% in Q4 FY25
Corporate India's net profit growth rate increased moderately to 15.5% in the fourth quarter of fiscal 2025, as against 14% in the year ago period according to data from Centre for Monitoring Indian Economy (CMIE). The profit after tax (PAT) as a share of total income was at 10.85% in the quarter ended March 2025. This was slightly more by one percentage point over the corresponding period of the previous quarter. The growth rate of income from sales slowed to 6.3% in the quarter-under-review from about 8.4% in the year ago period. Other income increased at a pace of 7% in Q4FY25 , much slower than the corresponding period in FY24, when it grew over 14%.CMIE gives data on corporate India's performance for more than 4,200 companies. To be sure, a larger and consistent sample of companies would increase accuracy. Total expenses increased marginally at a rate of 6.7% in the fourth quarter compared with 6.4% in the year ago period. While total expenses stayed flat, a disaggregation of the expenses show a different picture. Raw material and purchased finished goods cost grew at 6% in the quarter under review. This measure grew just 2% in the corresponding period last year. However expenses incurred on wages and salaries grew at a pace of 6.3% in Q4FY25 , among the slowest since fourth quarter of 2017. Expenditure on salaries and wages had grown 10.2% in the year ago period The net profit of Nifty 50 companies which are the most representative of corporate India grew just over 12.4% in the fourth quarter of FY25 as against a growth rate of about 24.5% in the same quarter last year. Equity analysts feel that the value of the stocks of companies across sectors are too expensive in valuations and may not justify their fundamentals.'We would note that valuations have stayed at high levels in several sectors and stocks despite meaningful earnings downgrades,' said analysts at Kotak Institutional Equities.
The Hindu
28-05-2025
- Business
- The Hindu
Increased outward FDI by Indian companies ‘warrants attention': Finance Ministry
Even as Indian companies turn 'cautious' on investing within the country, and the global economic scenario remains uncertain, the increased outward foreign direct investment by Indian companies 'warrants attention', the Ministry of Finance has noted in a new report. The Hindu had previously reported how the Reserve Bank of India's data showed that, in 2024-25, Indian companies invested a total of $29.2 billion in other countries, 75% higher than the previous year, which was a major contributor towards India's net foreign direct investment (FDI) figure falling 96% to just $0.4 billion. 'That Indian overseas direct investment increased nearly by $12.5 billion during the year FY25, even as uncertainty reigned in the world, warrants attention, especially given their cautious attitude towards domestic investment,' the Department of Economic Affairs of the Ministry of Finance noted in its Monthly Economic Review (MER) released on Tuesday (May 27, 2025). Data from the private sector database Centre for Monitoring Economy (CMIE) shows that the Indian private sector is indeed turning more cautious about its plans, as exhibited by a rising ratio of projects cancelled versus new ones announced. Analysis by The Hindu of the CMIE data shows that the ratio of dropped projects to new project announcements by the Indian private sector — where a higher ratio indicates higher caution — has risen steadily to 36% in 2024-25 from 30.8% in 2023-24, and 21.8% in 2022-23. This rising trend breaks a streak where this ratio had been falling since 2018-19. This cautious approach is confirmed by the latest Forward-Looking Survey on Private Sector Capex Investment by the Ministry of Statistics and Programme Implementation (MoSPI), cited in the Finance Ministry's report, which shows that Indian corporates are planning fewer investments in this financial year as compared to last year. According to this survey, Indian corporates expected to invest ₹6.6 lakh crore in 2024-25, up 57% from the ₹4.2 lakh crore of actual capital expenditure they incurred in 2023-24. However, in the current financial year 2025-26, this number is again expected to fall to ₹4.9 lakh crore, according to the survey. 'The slightly lower intended capital expenditure for FY26, though still above FY24 levels, reflects cautious planning after a strong FY25,' the MER noted. Overall, the MER said the trend indicates growing corporate confidence and a 'judicious approach to investment' in an evolving global scenario.
New Indian Express
27-05-2025
- Business
- New Indian Express
Tamil Nadu faces silent youth unemployment crisis amid unfulfilled job promises
In Tamil Nadu, we have long prided ourselves on being industrious, innovative, and aspirational. For decades, our state was a model of industrial development and social mobility — a place where hard work translated into upward progress. But today, that promise is breaking down. The unemployment crisis, especially among our youth, has become more than an economic issue — it is a quiet emergency that the current government has neither acknowledged seriously nor addressed competently. According to the Centre for Monitoring Indian Economy (CMIE), as of early 2024, Tamil Nadu's unemployment rate stood at 5.2%, higher than the national average. But statistics only reveal part of the problem. Under-employment, disguised unemployment, and the migration of skilled youth to other states and abroad reflect a growing erosion of opportunity, affecting lakhs of families. The ruling party touts its achievements through job fairs and the 2024 Global Investors Meet (GIM), claiming Rs 6.64 lakh crore in investment commitments and 14.5 lakh promised jobs. Yet, by April 2024, only Rs 13,000 crore had materialised and a mere 46,000 jobs were created — just over 3% of the original promise. These jobs, largely in MSMEs, often lack security, growth prospects, or adequate compensation. We are witnessing a dangerous gap between aspiration and accountability. The tragedy isn't just the unemployment rate — it is the collapse of public faith in government schemes as reliable engines of opportunity.
