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Why Indian Engineers are Unemployable & what’s the solutions

Parents often hold the belief that engineering jobs are readily accessible for their children. However, even experts find it challenging to convey the message that their sons or daughters may lack the essential technical knowledge required in the field. Obtaining first-class or distinction grades has become increasingly achievable without a solid foundation in engineering principles. It is crucial for parents to reconsider their pursuit of engineering degrees for their children in light of these realities.

Basic Facts:

  1. USA produces around 1 lakh engineers per year for a $16 trillion economy.
  2. As of 2021, India annually produces 15 lakh engineering graduates for a $ 3.7 trillion Economy.
  3. India boasts the distinction of having the largest population of engineers globally, accompanied by an extensive network of engineering education institutions and infrastructure. The country's technical education landscape encompasses a staggering 2500 engineering colleges, 1400 polytechnics, and 200 schools dedicated to planning and architecture. This vast educational ecosystem underscores India's commitment to nurturing technical expertise and innovation on a massive scale.

Current Landscape of Engineering Education in India:The landscape of engineering education in India is evolving rapidly, with a focus on expanding education infrastructure and implementing more favorable rules, aiming to make India one of the world's preferred higher education destinations, as per the Indian Brand Equity Foundation (IBEF). The National Education Policy 2020 (NEP 2020) is a potential catalyst for reform, but its success remains uncertain. An Accurate Institute report highlights that India's engineering education currently falls short of international standards. Issues include a shortage of qualified instructors, inadequate infrastructure, and outdated curriculum that does not adequately prepare students for industry demands.

The Job Market for Engineering Graduates:The job market for engineering graduates poses challenges, with many fresh graduates, especially in fields like civil engineering, struggling to find core area jobs. Reasons include limited opportunities, intense competition, and skill-job requirement mismatches. In 2023, employability for Indian engineering graduates increased to 57% from 46% in 2021, according to Statista, while overall youth employability remained stagnant at 46% for four years. Some engineering colleges report subdued campus placements due to factors like economic conditions, industry demand, and graduate quality. Many engineering students opt for non-engineering jobs due to factors such as higher pay, flexible job profiles, better growth opportunities, and self-learning prospects. Engineering students often face physical and mental exhaustion from demanding academics. Effective time management and self-care are vital to manage stress and avoid burnout, with online resources available to assist in these areas, including mindfulness techniques and time management strategies.

Why Indian Engineers are Unemployable? The notion that Indian engineers are generally unemployable is a broad stereotype and does not hold true for everyone. India produces a large number (1.5 Million annually) of engineering graduates, and the employability of engineers varies widely based on various factors:

  1. Quality of Education: The quality of engineering education in India varies from one institution to another. Top-tier engineering colleges in India, like the IITs and NITs, produce highly skilled and employable engineers. However, many lower-ranked colleges may struggle to provide a high-quality education.
    The overall skill level of the average engineer in India is often poor, and in many cases, virtually nonexistent. With the exception of the top 100-200 colleges, many fresh engineering graduates lack practical knowledge of their field. For example, asking a fresh mechanical engineer if they can design a simple frame may yield disappointing results. Of the hundreds of thousands of engineering graduates produced annually, less than 5% come from the pan-India national-level autonomous institutes like IITs, NITs, and IIITs . Just over 5% are produced by state-level autonomous institutes and unitary universities approved by the UGC. The majority, over 90%, of engineering graduates are from private and non-autonomous state-level institutes that require approval from the regulatory authority AICTE to offer engineering courses.
    History: The history of western-style engineering education in India began during the British colonial period. It was initiated to train overseers for the construction and maintenance of public infrastructure like buildings, roads, canals, and ports. It also aimed to prepare artisans and craftsmen to use instruments and apparatus required by the army, navy, and survey department. While superintending engineers were often imported from Britain, lower-grade craftsmen, artisans, and sub-overseers were locally recruited. To enhance their efficiency, industrial schools were established alongside the Ordnance Factories Board and other engineering facilities. Challenges persist in the current engineering education landscape in India. These include a lack of academic quality, a shortage of qualified professors, and subpar infrastructure in many private engineering institutes. Poor-quality engineering academics have impeded industrial growth, a concern even raised by the World Bank regarding India and South Asian countries. Outdated curriculum content is another issue, as many private engineering colleges continue to teach subjects and technologies no longer relevant to today's industry, placing Indian engineering graduates at a disadvantage compared to their peers from foreign universities.
    A few years ago, Narayan Murthy commented on the flaws of the country’s learning system, “Engineering colleges in India are churning out only 25 % quality engineers and nearly 80-85 % of youngsters are not suitably trained for any job”.
    The quality of engineering education in India is quite diverse and can vary significantly depending on several factors:
    1. Top-Tier Institutions: India is home to some world-renowned engineering institutions, such as the IITs, NITs, and a few other prestigious colleges. Graduates from these institutions are typically well-prepared and highly sought after by employers both in India and abroad.
    2. Variability: There is a significant disparity in the quality of engineering education across different institutions. While top-tier institutions maintain high standards, many lower-tier engineering colleges may struggle to provide quality education due to limited resources and infrastructure.
    3. Curriculum: Curriculum disparities exist in engineering programs, with some institutions maintaining up-to-date course structures while others lag behind. Outdated curriculum poses a significant problem as it creates a mismatch between what is taught in colleges and what the industry demands. Graduates often lack practical skills necessary for engineering work due to this gap. Addressing this challenge is crucial, as the current generation of engineering graduates in India often lacks awareness of recent industry trends like IoT, Big Data, Analytics, Cloud, etc., and how to apply them in real-world scenarios. Moreover, they often struggle to apply basic concepts taught in engineering institutes. In the rapidly evolving technological landscape, engineers in India face career challenges that necessitate continuous skill upgrades.
    4. Faculty: The quality and expertise of the faculty members play a crucial role in the overall education experience. Top institutions often have highly qualified and experienced professors, while smaller colleges may face challenges in attracting and retaining quality faculty.
    5. Resources: Access to modern labs, libraries, and infrastructure can significantly impact the quality of education. Top institutions typically have better resources, but many colleges may lack adequate facilities.
    6. Research & Innovation: Leading institutions prioritize research and innovation, which can enhance the quality of education and prepare students for cutting-edge technology and scientific advancements.
    7. Industry Interaction: Collaboration with industries through internships, projects, and guest lectures can make engineering education more practical and industry-relevant.
    8. Accreditation: Accreditation bodies like the National Board of Accreditation (NBA) assess and accredit engineering programs in India, helping to maintain certain quality standards.
  2. Skill Mismatch: There is sometimes a mismatch between the skills acquired during education and the skills required by the industry. The curriculum at some institutions may not be aligned with the current needs of the job market.
  3. Soft Skills: Engineering is not just about technical skills. Soft skills, such as communication, problem-solving, teamwork, and adaptability, are crucial for employability. Some engineering graduates may lack these skills. Enhancing these skills can increase an engineering graduate’s employability and chances of success in their career. Websites like Coursera and edX offer numerous courses on soft skills that can be beneficial for engineering students and graduates. The engineering education issues in India are a matter of national concern, requiring immediate attention and reform to ensure the country’s engineers are globally competitive
  4. Industry-Academia Gap:To bridge the industry-academia gap, fostering collaboration is essential. More internships, co-op programs, and practical training can provide students with real-world experience. Networking is also crucial in the engineering field. Building a professional network can lead to mentorship, internships, and job opportunities. Platforms like LinkedIn offer a space to connect with industry professionals, join relevant groups, and engage in discussions. Attending industry events and webinars is another effective way to meet professionals and stay updated on trends. Industry exposure is a key factor in enhancing engineering graduates' employability. Internships, industrial training, and project work offer hands-on experience and a deeper understanding of the industry. Students should actively seek out these opportunities to make their resumes more appealing to potential employers.
  5. Continuous Learning: In today's fast-paced technological landscape, engineers need to be adaptable and willing to learn continuously. Those who do not update their skills may face employability challenges. The field of engineering is constantly evolving, with new technologies and methodologies emerging regularly. To stay relevant in this dynamic field, continuous learning is essential. Engineering graduates should be open to learning new skills and updating their knowledge throughout their career. Online learning platforms like Udemy, Coursera, and edX offer a wide range of courses in various engineering disciplines.
  6. Corruption and unethical practices are a significant concern in India's engineering education sector. Issues such as bribery, nepotism, and favoritism are pervasive, compounding the challenges faced by engineering students. These unethical practices impact the quality of education and students' and educators' perceptions. According to The Times of India, corruption in education takes various forms, including bribery, cronyism, financial embezzlement, graft, and more. Politicians and businessmen exploit this situation by leveraging their influence to establish colleges. Regulatory bodies like the AICTE were tasked with ensuring educational standards but often fell short, allowing profit to take precedence over education quality in many institutions. This lack of regulation and oversight has contributed to the problem.
  7. Past Job opportunities: In the past, manufacturing was the predominant mass-recruiting sector, primarily hiring from core engineering branches like Electrical, Mechanical, and Civil. However, manufacturing's contribution to GDP has remained stagnant at 17%, making core branch placements challenging. The IT sector emerged as a more recent mass recruiter, growing to nearly 5% of the GDP. IT employed millions of engineers, but now, even in IT, only skilled professionals are in demand. To understand this issue, we can trace it back to the IT boom in India during the 1990s and 2000s. The influx of multinational companies attracted by the availability of English-speaking and cost-effective engineers led to a surge in demand for engineers. Many engineering students aspire to work for top companies like Google or Facebook, but the reality is different. A report by Aspiring Minds revealed that only 7% of engineering graduates in India secure core engineering jobs. This demand for engineers prompted the proliferation of engineering colleges across the country. Unfortunately, not all these institutions prioritize quality education. The rush to open engineering colleges turned it into a business opportunity for some, resulting in a mix of colleges with varying standards, from renowned for quality education to mere scams.
  8. Sectors of Economy that doesn’t need Engineers: When considering the sectorial composition of the Indian economy, it becomes evident that many sectors do not require engineers. For instance, tourism, constituting 10% of the GDP, typically doesn't demand engineering expertise. Similarly, sectors like finance, trade, hotels, and restaurants do not rely on engineers. Even in areas like health, education, and agriculture, the need for engineers is minimal. Surprisingly, more than 50% of the GDP doesn't have a role for engineers. Despite this, a significant portion of Indian youth still pursue engineering as their career choice. It's worth noting that many engineering students are now opting for non-engineering jobs due to factors like higher pay, job profile flexibility, better growth prospects, and opportunities for self-learning. This shift in preference reflects the evolving landscape of employment choices in India.
  9. Demand Supply mismatch: Demand is low while supply is high. Today the situation is that most engineers are working in a field that has no connection to what they have studied in the college. This is a waste of resources. Most common engineering branches in Undergraduate are Computer science & engineering, Electronics & Communication engineering, Electrical & electronic engineering, Mechanical engineering, Civil engineering and Chemical engineering.
  10. High Student-Teacher Ratios: High student-teacher ratios in many Indian colleges are a significant issue, resulting in inadequate attention to individual students and negatively impacting the quality of education. According to a report by Hindustan Times, India lags behind countries like Brazil and China in terms of student-teacher ratios in higher education, with a ratio of 24:1, compared to 19:1 in Brazil and China. This not only overburdens a small group of teachers but also hinders the quality of academic research. A low student-teacher ratio indicates that teachers have to handle multiple students, leaving little time for each. The shortage of faculty has worsened due to increasing student enrollments and insufficient faculty recruitment in higher education institutes. India's higher education sector, including central, state, and private universities, faces a shortfall of over 5 lakh teachers as per estimates.
  11. Cost of Engineering Degree: Obtaining an engineering degree in India is a costly endeavor, with expenses ranging from Rs. 10-15 lakhs. This financial burden can be overwhelming for economically disadvantaged parents, especially when their son or daughter struggles to secure a job. Furthermore, some engineering colleges engage in the illegal practice of capitation fees. AICTE, the regulatory body for technical education, has urged students, parents, and the public not to pay capitation fees or any unmentioned charges beyond what's specified in the institution's prospectus. AICTE emphasizes that the fees should be approved by the state's fee regulatory committee, and the institute must disclose them on its website. Educational regulatory agencies like UGC and regional fee regulating bodies mandate that the institution should clearly state the fees in its prospectus. These fees can vary from lakhs to crores, and certain colleges have established a system known as the "Management Quota" to legitimize these payments. Under this system, a percentage of seats are reserved for students who can afford high fees, while the remaining seats are allocated based on merit. However, the lack of proper regulation has made it challenging to ascertain the exact number of students admitted through merit versus those who secure admission through donations.

The Employability Crisis:
Despite the large number of engineering graduates, only a small %age are considered employable. This is due to a combination of factors including the quality of education, lack of practical skills, and the gap between industry requirements and academic curriculum. A significant issue that has been increasingly highlighted is the rising rate of engineering graduates’ unemployment in India, which is a direct result of the gap between industry requirements and academic learning Studies have shown that a significant %age of fresh engineering graduates are not immediately employable. This highlights the need for improvements in the quality of engineering education and better alignment with industry requirements.

The Indian technology industry (Nasscom), valued at $245 billion, has highlighted the "employability gap" in engineering graduates, stressing that the education system is falling short in cultivating strong foundational and professional skills. This skills gap forces IT companies to invest significant time and resources in training fresh graduates before deployment, resulting in increased costs. While the Indian IT sector has thrived for years due to cost arbitrage and the sheer number of engineering graduates, evolving industry demands have brought disappointments. Today's engineers are expected to be more than back-office workers, playing a pivotal role in digital transformation. However, the existing educational system often neglects skills like effective communication, design thinking, critical thinking, and problem-solving. The industry seeks foundational skills in areas like artificial intelligence and cyber security, alongside essential professional skills like effective communication, collaboration, and design thinking. A striking issue is that a significant portion of engineering graduates, approximately 94%, lacks the necessary skills for employment, which leads to the industry having to retrain even those who secure jobs. The Aspiring Minds study revealed that a minimal 4.77% could write the correct logic for a programming job. This employability crisis isn't limited to IT; it extends to roles like mechanical design engineer and civil engineer, with employability percentages as low as 5.55% and 6.48%, respectively. The issue has been known for over a decade, with substandard engineering education being widespread, except for prestigious institutes like the IITs. The mushrooming of low-quality engineering colleges has exacerbated the problem, resulting in many of them being closed down due to low enrolment. According to the AICTE, around 80,000 fewer engineering seats will be available in the country this year, leading to approximately 3.1 lakh fewer seats in four years. AICTE has sought to close about 800 engineering colleges across India due to declining admissions and the absence of takers for their seats. Nearly 150 colleges voluntarily close each year, and strict AICTE rules stipulate that colleges lacking proper infrastructure and reporting less than 30% admissions for five consecutive years must shut down.

Solutions to improve the employability of Indian engineers:
Enhancing the quality of engineering education in India is a complex and ongoing process, involving various stakeholders such as government initiatives, educational institutions, industry collaborations, and students. Many institutions are actively working to update their curriculum, improve infrastructure, and provide a better learning experience. Some Indian states have also implemented policies to raise the bar on engineering education quality. Prospective engineering students should diligently research and select institutions that offer the best education to ensure better employability and career prospects. The reputation and quality of the engineering program they choose can significantly impact their future. It's worth acknowledging that Indian engineers are highly skilled and in demand globally. Nevertheless, there is room for improvement in the overall quality of engineering education and graduate employability. Achieving this goal requires a collective effort from educational institutions, industry partners, and policymakers.

  1. Curriculum Revision: Engineering institutions should regularly update their curriculum to align with industry needs. They can introduce more practical and industry-relevant courses.
  2. Soft Skills Training: Incorporate soft skills training in the curriculum to help students improve their communication, teamwork, and problem-solving abilities.
  3. Industry-Academia Collaboration: Promote collaboration between universities and industry through internships, research projects, and guest lectures by industry experts.
  4. Professional Development: Encourage engineers to pursue continuous learning through online courses, certifications, and workshops to stay up-to-date with the latest technologies and trends.
  5. Career Counseling: Provide career guidance and counseling services to help students make informed decisions about their education and career paths.
  6. Government Initiatives: Governments can also play a role by supporting initiatives to improve the quality of education and promote employability.

Employers increasingly seek engineers with advanced skills, not just theoretical knowledge. To stay competitive, engineers should consider pursuing additional courses in emerging technologies, including:

  1. Artificial Intelligence (AI): Embrace AI simulation, Causal AI, Neuro-symbolic AI, and AI-augmented software engineering.
  2. Robotics: Explore applications in manufacturing, medical robotics, defense, and agriculture.
  3. Machine Learning: Master machine learning and reinforcement learning techniques.
  4. Internet of Things (IoT): Understand IoT and its applications.
  5. Cyber security: Specialize in cyber security, cyber security mesh architecture (CSMA), generative cyber security AI, and graph data science (GDS).
  6. Cloud Computing: Learn about cloud computing, GitOps, augmented FinOps, cloud development environments (CDEs), cloud sustainability, cloud-native, and cloud-to-edge computing.
  7. Security and Privacy: Focus on human-centric security and privacy, homomorphic encryption (HE), and post-quantum cryptography (PQC).
  8. API-centric SaaS: Gain expertise in API-centric Software as a Service.
  9. Open-source: Understand open-source program office (OSPO) concepts. j) 5G and 6G Technology: Stay updated on the latest in wireless technology.
  10. Blockchain: A decentralized and secure digital ledger system that records transactions across a network of computers, it creates a chain of data blocks that are linked together and encrypted, ensuring transparency, immutability, and trust. It is most famously associated with crypto-currencies with a wide range of applications, including supply chain management, financial services, and digital identity verification
  11. Augmented and Virtual Reality
  12. 3D Printing: The world of additive manufacturing
  13. Gene Therapy
  14. Medical Advancements: Stay informed about cancer vaccines, cultured meat, and stem-cell therapy.
  15. Nanotechnology
  16. Civic and Construction Technologies: Explore civic technologies, including construction innovations.
  17. DNA Digital Data Storage
  18. Quantum Computing
  19. Entertainment Technologies
  20. Optoelectronics
  21. Energy Technologies
  22. Materials and Textiles technologies
  23. Medicine technology
  24. Military & Defense technologies
  25. Space Technologies

Pursuing courses in these emerging technologies can significantly enhance an engineer's skill set and employability in a rapidly evolving job market.

Training Initiatives: Some companies offer training programs to bridge the gap between academia and industry. However, not all companies can afford such programs, leaving many engineering graduates struggling to find suitable jobs. Future of Engineering
The future of engineering is likely to see the emergence of various specialized degrees and interdisciplinary programs to meet the evolving demands of technology and industry.
The engineering industry is going through a fast transition. The requirements of the market are being met by adapting classic engineering courses as technology develops and the demand for trained workers increases.

The global need for engineers:It is impossible to overestimate the significance of engineering for the progress and development of the world, a discipline that has risen enormously over the past century. Engineers have been at the vanguard of development, pushing us farther and faster into the future with their pioneering work on everything from the vast civil engineering projects of the past to the sophisticated robots and AI of the present. As the world enters its second decade of the twenty-first century, demand for engineers will only grow, creating a greater need for more specialized and sophisticated engineering programs. Our education and training must keep up with the rapid technological progress. Because of this, engineering schools are increasingly concentrating more on specialized subjects like automation, data science, and artificial intelligence.
However, the future of engineering degrees goes beyond specialized subjects. Future engineers will need to develop their ability to use their knowledge and skills in a variety of situations. It entails moving away from isolated notions and putting more of an emphasis on problem-solving, which involves employing a variety of tools and techniques to address challenging real-world issues. To do this, engineering courses must put an emphasis on providing students with the chance to advance both their technical knowledge and critical thinking abilities. Engineering courses have a bright future since the industry is expanding and changing more quickly than ever. Our education and training must adapt as the world does in order for us to stay at the forefront of development.

The future potential for engineers: The future of engineering education appears more promising than ever as the world is becoming more automated, digital, and integrated. The potential for engineers to have a significant effect on the world is enormous, given in recent advances in technology and artificial intelligence. Engineers have always been a driving force behind many of the most innovative solutions in the world, from the beginning of the Industrial Revolution to the present. This pattern will persist as we continue to seek automation, intelligent technology, and sustainable solutions to address society’s most pressing issues. The advent of automation, robots, and AI has provided engineers with new areas to investigate, and courses that train students for these cutting-edge technologies are growing in popularity. Additionally, the demand for robust infrastructure, data analytics, and renewable energy solutions will all present chances for engineers to contribute to solving global problems like climate change. There is a movement toward interdisciplinary study in the engineering field, with students enrolling in courses that mix engineering concepts with other fields of study like psychology and business. Engineers will now have fascinating new chances to work in a variety of companies and cooperate with groups from other disciplines.