More graduates, uncertain futures: India’s youth question what a university degree can deliver

NEW DELHI, 19 AUGUST 2026 —

India’s Graduates Face Uncertain Futures as Job Market Struggles to Keep Pace with Education System

Five months later, he joined thousands of students protesting the NEET paper leak scandal, a crisis that exposed deep flaws in India’s higher education system. “When the system is not enough, students have to take greater responsibility for their own futures,” he told Channel NewsAsia. “Whether that means going outside the classroom to learn or going out to demand change.”

The protests, which culminated in the resignation of India’s Education Minister Dharmendra Pradhan on July 25, highlighted systemic failures far beyond exam leaks. While Parliament responded with a bill proposing stricter penalties, faster courts, and a special task force to combat malpractice, educators and recruiters say the issue runs deeper. “The paper leaks were just the catalyst,” said Rohit Azad, a professor of economics at Jawaharlal Nehru University.

“At the heart of the protests were long-simmering frustrations over youth unemployment, rising living costs, and declining confidence in India’s higher education system.”

India’s youth unemployment rate remains stubbornly high, despite recent improvements. Government data for 2025 shows that unemployment among Indians aged 15 to 29 stood at 9.9%, more than triple the national rate of 3.1%. While this marks a decline from 10.9% in 2022, the situation is worse in urban areas, where youth unemployment reached 13.6% in 2025.

Paradoxically, those with higher education face greater challenges: graduates with at least a secondary school education had an unemployment rate of 6.5%, compared to 11.2% among those with graduate-level degrees. “This points to the challenges graduates face in finding jobs in India,” said experts.

The disconnect between education and employment has forced students to take matters into their own hands. Nikhil Taneja, founder of youth media platform Yuvaa, has interacted with over 15,000 students across 150 campuses in the past eight years. He noted a marked shift in their concerns. “There is no sense of safety and no security, and that’s where the anxiety stems from,” he said.

“Young people keep asking themselves: ‘How will education actually help me?’” Increasingly, students are building side hustles, taking internships, and learning AI tools online—strategies to hedge against an unpredictable job market.

Kushwaha, for example, spends one to two hours every other day mastering AI skills alongside his political science coursework. “I can’t afford to miss this AI bus,” he said. “The education system is not adapting quickly enough.” His experience reflects a broader trend: students no longer trust that their degrees alone will secure stable careers.

Taneja added, “The only people who can really afford to fail are those who already have some starting capital from their families. For everyone else, there is a lack of security—and that’s why students are anxiety-stricken.”

Employers, too, are redefining their expectations. Kishore Selva Babu, Director of the university student council at Bengaluru’s Christ University, said recruiters now prioritize practical application over rote knowledge. “The expectations have shifted from ‘What does the candidate know?’ to ‘What can the candidate do with what they know?’” he explained. Graduates who can demonstrate internship experience, industry projects, or AI proficiency stand out, even if their academic performance is average.

Yet universities struggle to keep pace with rapid technological change. Kamal Karanth, co-founder of recruitment firm Xpheno, argued that academic programs often lag behind market demand by three to five years. “By the time universities introduce specialised programmes, AI and automation have already transformed the industry, reducing the need for many entry-level roles,” he said. “Universities should prepare students for the future AI-native workspace and think, plan, and operate like the industries they serve.”

Babu agreed, emphasizing adaptability over fixed skills. “We need more internships, real-world projects, and industry-linked assignments where students learn to apply what they know and work with emerging technologies,” he said. While employers still seek graduates with strong technical foundations, they increasingly value communication, problem-solving, and learning agility—traits that traditional curricula often overlook.

The crisis extends beyond India’s borders, with implications for Malaysia and Southeast Asia. As India produces more graduates but fails to create enough high-quality jobs, regional policymakers may look to its struggles as a cautionary tale. Malaysia, which has invested heavily in its higher education sector, could face similar pressures if its graduates face comparable mismatches between skills and labor market needs.

Regional recruiters may also reassess hiring strategies, prioritizing adaptability and continuous learning over static qualifications.

For now, India’s youth remain caught between aspiration and reality. Ruhi Kabra, a 22-year-old Ashoka University graduate who joined the NEET protests, summed up the sentiment: “It was never just about one thing. There are so many systemic issues.” As AI reshapes industries and job markets evolve, the question for India’s graduates is no longer whether they can access education—but whether it will deliver the futures they were promised.