Every year, India's vast academic network, which includes more than 50,000 institutions and universities, produces an extraordinary number of bright young minds. This enormous talent pool, which includes engineers in Bengaluru who code, economists in Delhi who study markets, biotechnologists in Hyderabad, and academics in the humanities in Kolkata, is set to help India reach its ambitious target of having a USD 5 trillion economy by 2030. But a harsh and unsettling fact remains: the same professions for which these graduates are being prepared are disappearing at a startling rate.
Conventional entry-level jobs are being destroyed by the unrelenting advancement of automation, artificial intelligence (AI), robots, and agentisation. Due to this paradigm shift, millions of people are now stuck in a job market where their academic degrees are no longer valued as much.
If this gap between education and jobs is not closed, it might lead to widespread social unrest, economic stagnation, and the loss of India's demographic dividend, which is one of the world's last great chances to capitalise on a growing number of young workers.
Information-based perspectives on the job market
The latest government statistics present a bleak picture. India's overall unemployment rate increased from 5.1% in April 2025 to 5.6% in May 2025, according to the Periodic Labour Force Survey (PLFS). The youth (ages 15 to 29) unemployment rate is even more concerning. It is 13.7% in rural regions and 18% in urban areas in June 2025, with other estimates suggesting even greater peaks in metropolises such as Chennai and Mumbai.
In addition to the gender gap in labour force participation, female unemployment rates are typically higher than male rates, with metropolitan centres reporting rates as high as 22%.
The World Economic Forum's Future of Jobs Report 2025 sheds light on the global context of this dilemma, predicting that by 2030, job disruption will affect 22% of occupations worldwide, leading to the creation of 170 million new jobs and the displacement of 92 million, for a net gain of 78 million jobs. However, India's future is less optimistic due to its fundamental structural challenges.
According to the report, 63% of companies globally cite a lack of skills as the main obstacle to organisational change. In India, which generates over 10 million graduates a year, including 1.5 million engineers, this problem is especially noticeable. However, according to industry evaluations from organisations such as Aspiring Minds and NASSCOM, just 43–45% of all graduates are considered marketable for important positions. Additionally, within six months of graduation, an astounding 83% of engineering graduates say they have not received any offers of internships or jobs.
Both structural issues, such as slow growth in the formal sector and a growing gap between employer demands and university curricula, and cyclical variables, such as seasonal agricultural downturns that reduce rural employment, make this incongruity worse.
Disruption by technology: A two-edged sword
This employment dilemma is both the result of and a motivator for automation and AI. According to the Future of Positions Report 2025, 69% of formal sector jobs in India, including those in manufacturing, IT services, finance, and retail, may be automated by 2030.
Entry-level and routine positions, which are typically the first for new graduates, are particularly vulnerable.
Banking transactions are currently completed by robotic process automation more quickly and accurately than by human clerks. Chatbots driven by AI have replaced customer service representatives at contact centres located in Noida and Gurugram. Machine learning algorithms are effectively digesting large datasets, eliminating the need for junior data analysts, while AI-assisted solutions such as GitHub Copilot expedite software development and reduce the need for entry-level coders.
According to the findings in the Report, 41% of firms worldwide plan to lay off employees as AI streamlines processes. The IT industry in India is already showing this trend, with companies like TCS and Infosys moving toward AI-driven solutions.
But this surge of technology also brings with it new opportunities. The green transition and technical advancements are driving the rapid growth of industries like AI and machine learning, big data, fintech, and renewable energy engineering, according to the Future of Jobs Report 2025. By 2030, about 39% of critical skills would change. Alongside human-centric abilities such as resilience and creative thinking, the fastest-growing demands will be for technical proficiencies like cybersecurity, big data, and AI, The Future of Jobs Report noted.
The demand for cybersecurity experts, robotics technologists, and AI educators is rising in India, especially in IT hubs like Bengaluru and Hyderabad. However, the majority of graduates lack the necessary skills for these new occupations, and the rate and scope of job displacement presently exceeds the rate of job creation.
Education, skills, and structural barriers
The educational system in India is finding it difficult to adjust to this revolutionary change. A significant amount of business, engineering, and science curricula are still based on theoretical frameworks that are often 10 years or more outdated.
Digital literacy, resilience, and analytical thinking are among the most in-demand skills globally, according to the Future of Jobs Report 2025. However, there are surprisingly few courses in robotics, data analytics, machine learning, or AI offered by Indian universities.
Less than 20% of engineering universities offer access to cutting-edge labs or industry-aligned projects, making hands-on, experiential learning even more uncommon. As they usually lack experience in the modern industry, faculty members are often ill-prepared to close this gap.
According to a 2025 LinkedIn survey, 73% of Indian recruiters place more value on observable skills, flexibility, and practical experience than on traditional degree credentials, indicating a shift in corporate priorities. The Future of Jobs Report 2025, which shows that 77% of businesses worldwide plan to upskill their staff to handle AI-driven advancements, supports this.
Nevertheless, there are still a few internship and portfolio-building possibilities in India, especially for students in Tier-2 and Tier-3 cities. Due to this skills gap and an excess of graduates in traditional fields such as commerce and mechanical engineering, there are too many people competing for fewer and fewer traditional jobs.
Implications for the economy and society: An imminent upheaval?
There are significant and wide-ranging repercussions from this employment crisis. With more than 600 million people under 25, India's youth bulge runs the potential of becoming a socioeconomic liability rather than an asset. Families often spend their whole life savings on college, fostering hopes of upward mobility, only to face despair when job prospects do not present themselves. According to the Future of Jobs Report 2025, 11 out of every 100 people worldwide may not receive the reskilling they need, putting them at risk of losing their jobs; considering India's size, this number is probably much higher.
Graduates who are unable to find formal sector work are more often forced to choose gig work, such as driving cabs or food delivery, or into unstable informal jobs in urban slums. This change jeopardises long-term career paths and widens economic gaps.
From student revolts in the 1970s to current agitations over job quotas, India's long history of youth unemployment has fuelled societal upheaval. Anti-establishment sentiments and institutional confidence can be damaged by unmet expectations. There is also a brain drain when talented graduates leave India for nations like the US, Canada, and Australia when they can't find work in their own country, reducing the country's intellectual capital. In 2024, more than 1.3 million Indian students studied abroad; this figure is expected to rise.
Can/should governments limit technology?
While some support limiting the use of AI or halting automation in order to protect jobs, such actions are dangerous and unwise. According to the Future of Jobs Report 2025, technical developments, especially in the areas of AI and renewable energy, are essential to preserving economic competitiveness. Technology stifling will hurt India's reputation in the international economy, discourage foreign investment, and hinder innovation in fields like IT and renewable energy where India wants to be a leader. Instead, governments ought to concentrate on utilising technology to lessen its disruptive impacts and open up new possibilities.
There is potential in recent government measures. With the goal of integrating rural talent into future job markets, the Indian government announced in July 2025 that 5.5 lakh village-level entrepreneurs (VLEs) will receive free AI training under the India AI Mission. Data analytics, cybersecurity, and machine learning are all covered in this training. In order to give young people industry-relevant skills, the government also raised apprenticeship stipends by 36% under the National Apprenticeship Promotion Scheme and improved AI skilling through the Pradhan Mantri Kaushal Vikas Yojana 4.0. These initiatives are in line with the Future of Jobs Report 2025's suggestion that the public, corporate, and educational sectors work together to close the skills gap.
Similar tactics are being adopted by other countries worldwide. The Future of Jobs Report 2025 states that Singapore is putting a high priority on the widespread application of AI for the good of all citizens, combining it with government and worker participation to reduce job displacement. To support economic stability and create jobs in the green energy sector, the Chinese government has increased the use of renewable energy sources and encouraged domestic technological innovation. Instead of opposing change, these examples highlight the necessity of proactive, technologically adept policies.
A way forward: Matching skills to upcoming careers
India needs to make systemic changes to align education and skills with the needs of the workforce of the future in order to manage this challenge. Curriculum transformation is critical: as recommended by the Future of Jobs Report 2025, digital skills, robotics, data science, and applied AI must be incorporated into all subject areas. To guarantee that graduates are prepared for the workforce, a change from rote learning to project-based, experiential pedagogy is necessary.
Partnerships with the industry are essential. Germany's dual education model calls for internships and apprenticeships to be required as part of degree requirements. The creation of university-industry research centres, similar to those established by Stanford and Silicon Valley, would encourage creativity and hands-on training. Investing in retraining academics to guarantee they can teach cutting-edge skills by staying up to date with upcoming technologies like generative AI and quantum computing is essential for faculty upskilling.
To create AI-focused modules, for example, IITs and NITs may collaborate with IT firms.
It is essential to encourage lifelong learning by using platforms such as Coursera and SWAYAM to popularise microcredentials and short-term, stackable certificates that highlight cutting-edge skills like AI and cybersecurity. Given that 59 out of 100 workers worldwide will need training by 2030, according to the Future of Jobs Report 2025, this is a critical issue for India's sizable workforce. Given that 73% of Indian recruiters increasingly prefer skill evaluations and portfolios over traditional degrees, it is imperative that talent recognition be given top priority. Platforms like HackerRank and GitHub provide competency certification.
Bengaluru's booming tech sector serves as an example of how to create startup ecosystems with incubators and tax incentives in order to promote entrepreneurship and protect gig economy rights. To guarantee fair compensation and benefits, gig workers must have legal protections. Recognising that women are disproportionately impacted by automation in jobs such as administrative assistants, regional and gender inclusion require tailored efforts to increase female labour participation and rural employment (Future of Jobs Report 2025).
Quick steps for graduates
Technology skills, resilience, and creative thinking will be essential by 2030, according to the Future of Jobs Report 2025. Graduates must take proactive steps to safeguard their futures, even though institutional improvement is crucial. Adopting a lifelong learning mindset is essential for ongoing skill development. AI, data science, and cybersecurity courses are available on platforms such as Coursera, edX, and India's SWAYAM.
Seeking internships, freelancing, or participating in open-source projects on sites like GitHub85 are all important ways to obtain practical experience. One can greatly enhance their portfolio by taking part in hackathons or case competitions hosted by corporations like Google and Amazon. With communication, problem-solving, and entrepreneurial thinking becoming more and more important, it is becoming more and more important to cultivate soft skills and flexibility. Resilience and agility are identified as critical qualities in the Future of Jobs Report 2025. Developing professional networks is also crucial. To learn about job openings, use LinkedIn, industry webinars, and alumni networks.
Investigating alternate career options entails accepting freelance work, startup endeavors, or multifunctional positions in rapidly expanding fields with strong job growth, like green technology or fintech. Making mental health a priority is essential, as is cultivating resilience in the face of uncertainty through mindfulness, peer support groups, counseling, and stress management strategies.
Enabling the future
With 1.4 billion people and one of the greatest youth populations in the world, India is at a turning point in its history. By 2030, there will be a net gain of 78 million employment worldwide, according to the Future of employment Report 2025. India's ability to benefit from this trajectory, however, depends on its abilities to close the skills gap and adjust to technological change.
India can turn its young people from possible liabilities into the designers of a thriving, technologically advanced economy by reforming education, encouraging industrial partnerships, and equipping graduates with the flexibility to prosper. As millions of dreams are postponed, inaction puts society at risk for disillusionment and economic dysfunction. The time to act is now, not to fight the future, but to enable India's workers to influence it.
K Ramachandran is a former city editor and education correspondent with The Hindu (1989 - 2007). He continues to follow the higher education and skilling ecosystem with rigor and writes as a freelancer in various publications in print and digital media.
Views expressed are the author's own.