The Fallacies of India’s Education System: Impact on Employment Avenues

The Fallacies of India’s Education System: Impact on Employment Avenues 

Introduction: 

Education plays a vital role in shaping the future of the next generation. In today’s rapidly changing world, education paves the pathway for redefining the contours of socio-economic development.  This is why there is a dire need for effective and tailor made policies which ensure access to education for all. However, India’s traditional education system has been found to incorporate a traditional learning structure which prioritizes rote learning instead of facilitating creativity and critical thinking. 

There are a whole range of studies which state that the nation’s emphasis on rote learning and standardized testing, fails to facilitate a holistic learning experience. As a result, only 29 percent of students from grade 6 to grade 12 accept that their schools provide them a significant learning experience. Even the Annual Status of Education Report (ASER) 2023 revealed that nearly a quarter of teens in age group 14-18, were found to be unable to read grade 2 text fluently. This is a testament to the fact that there is a major disconnect between our education system and the eventual outcome. 

The outdated education system of India not only curtails the potential of an individual but also contributes to an increase in unemployment rates. The unemployment rate among young people aged between 20 to 24 grew from 43.65 percent to 44.49 percent, while for the 25- 29 age group it grew from 13.35 percent to 14.33 percent, shedding light on the gravity of the problem. This is an indication that our traditional forms of education need to be revamped,  to address the concern of employment. 

The emphasis on outcomes rather than building effective skills, is causing a divide between the education offered and the industry expectations. The lack of practical knowledge arises from an educational model that prioritizes exam scores over real-world applications. Additionally, a significant skill gap among Indian engineering graduates affects their employability. According to the TeamLease Report, India produces approximately 1.5 million engineering graduates every year, but only about 10 percent are expected to secure employment in 2024. This indicates that a significant portion of our population lacks the necessary skills to meet industry standards. 

The Dire State of Employment:

The disconnect and the widening gap between education curricula and industry demands has been a growing concern in India for quite some time. As per the recent government reports, the total enrollment in higher education has reached the milestone statistic of 4.33 crores in the financial year 2022, but the employment crisis continues to persist. The India Skills Report 2025 mentioned that the employability among Indian graduates has improved and risen to 54.81 percent. However, the statistics are still poor when compared to nations like Germany, USA where employment rates of graduates stand at 92 and 85 percent respectively.

According to the Economic Survey 2024-25, there is an alarming mismatch between the educational qualifications of India’s workforce and their job profiles. Additionally, the survey stated that only 8.25 percent of graduates were employed in the roles that align with their qualifications. The survey also mentioned that over 53 percent of undergraduates and 36 percent of post graduates were employed in jobs which were below their qualifications. This is due to the poor state of job opportunities available in the market. This in turn creates a vicious cycle of job dissatisfaction with untapped potential. 

It is necessary to realize that the current education system has its roots in the Industrial Revolution model which specifically focused on IQ. In the modern world where new forms of technology are readily available, these forms of skills can be easily substituted by mechanisms like Artificial Intelligence. This is why India needs to focus on job readiness, but sadly only 44 percent of our graduates are considered to be fit for top technical positions

Government Initiatives: 

There has been a wide range of criticisms against India’s traditional education, which rests on rote learning practices with emphasis on theoretical, knowledge-based learning. These criticisms as inferred from the aforementioned statistics were to some extent true as well. As a result, the Ministry of Education (MoE) brought out the National Education Policy (NEP) 2020 which replaced the National Policy on Education (NPE), 1986.  The policy brought out significant transformations to our education policy  adding up to the objectives of the Skill India Mission, 2015 which was an initiative to bridge the gap between employment and education. However, these reforms saw significant obstacles in implementation and the impact of these initiatives have not been substantial. 

The  Skill India Mission was introduced to mitigate the issue of lack of employable skills by providing relevant training programs. It was implemented through schemes like Pradhan Mantri Kaushal Vikas Yojana (PMKVY), National Apprenticeship Promotion Scheme (NAPS) and the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY). However despite multiple iterations of the respective programmes, the placement rate continued to be low. There was only a rise in the number of the short skilling courses and thereby number of certificates issued, but the real time impact was minimal. This reflects that these schemes are failing to align with the industry requirements. 

Similarly, the National Education Policy (NEP) 2020 was also brought in to restructure India’s traditional education system by fostering skill-based learning, critical thinking and a multidisciplinary approach. However, this policy also has its fair share of problems. It is plagued with limited investment in education, insufficient number of skilled teachers, lack of infrastructure and quality education in rural areas. Moreover, reports indicate that a substantial number of schools and colleges have yet to fully implement the changes into their curricula which are recommended by the NEP 2020 policy. These gaps in implementation,  combined with financial limitations and bureaucratic hurdles have slowed the policy’s progress. As a result, there is a growing gap and disconnect which has further worsened the unemployment rates in India. 

The Role of Technology and Entrepreneurship Skills: 

At this stage, there are two primary solutions which can be adopted to change the current scenario. The first step involves integrating technology into the education system. The incorporation of digital platforms and Artificial Intelligence (AI) can make learning more engaging and personalized. A significant growth has been seen in India’s EdTech sector, with projections of significant expansion. The sector’s market was valued at approximately $2.8 billion and is projected to reach $10.4 billion by 2025, driven by factors such as internet connectivity, a large student population and a high demand for accessible education. Additionally, the sector includes over 4,450 startups and provides services to about 300 million students in schools. 

There are several online learning platforms like Byju’s, Coursera and Udacity that have become crucial resources for students seeking to learn industry relevant skills. Apart from that, these platforms also provide a variety of courses that are both affordable and accessible to students than traditional education system. By utilizing these digital platforms and online learning tools, students can develop their competencies that match with current employment market requirements, thereby improving their future job prospects. 

The other proactive measure is creating unique pathways for economic development and job creation. In pursuance of this objective, the Indian government has launched a program called Startup India, providing recognition and support to more than 1,59,000 startups up until January 15th, 2025. However, the student participation remains minimal due to the insufficient entrepreneurial education in schools. A research report from the Global Entrepreneurship Monitor (GEM) also reflected that only 11%  of young Indian students select entrepreneurship as their career path which is a very small percentage compared to countries like the U.S, China and Canada. This is why it is important for us to ensure the introduction of entrepreneurship education components such as financial literacy, business management and digital technology competencies are very much needed. 

Conclusion

India’s education system structure is failing to prepare students in accordance with industry requirements, contributing to rising unemployment rates. The future of education structure needs  to be reformed to amalgamate the evolving industry requirements. And for that , the education system must incorporate facets of creativity, logical thinking and experiential learning. 

The Former RBI governor Dr. Raghuram G.Rajan also stresses on the importance of education in his book called “Breaking The Mould”. He mentions that “to become successful in most economic activities today, India needs to invest heavily in enhancing the capabilities of its citizens. Focus on education and skilling will enable our citizens to do the jobs that are available, and also attract employers looking for better skilled workers.” Therefore, if India wants to create a workforce that is not only employable but also capable of contributing to the economic growth through innovation, it should encourage reforms.