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India's Employability crisis: Why degrees aren't turning into Jobs?

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India continues to face a critical employability crisis even as thousands of graduates stream into the workforce. According to the India Skills Report 2025, only around 54.8% of graduates are projected to be employable this year - leaving nearly half ill-equipped for professional roles. At the heart of this challenge lies a persistent disconnect: universities focus on theory, while industries demand practical, up-to-date technical and soft skills. 

To tackle this gap, more than token partnerships are needed. Emerging models show universities and employers co-creating curricula, embedding live projects and internships, and aligning training with realtime industry needs.For instance, industry-driven courses now integrate digital skills, communication training and mentorship - rather than just guest lectures.

The way forward demands systemic change: institutions must become agile, industries must engage early and deeply, and policy frameworks must incentivize sustainable collaboration. Only then can the promise of India’s demographic dividend be fulfilled — producing graduates not just with degrees, but ready to contribute from day one.

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