Crores pursue BA, BCom degrees with weak job links: NITI Aayog flags urgency of reimagining higher education in India


India’s higher education system faces a structural imbalance, with crores of students opting for generic undergraduate degrees that often have weak links to employment, a recent NITI Aayog report has flagged.

This trend reflects a broader structural imbalance across degree colleges, Industrial Training Institutes (ITIs) and polytechnics, and underlines the need to rethink India’s higher education and skilling ecosystem, the report said.

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Citing Economic Survey 2024–25, the report said that only 8.25 per cent of graduates are employed in roles aligned to their qualifications. Educated unemployment is also high, as 13 per cent of all graduates and 20.4 per cent of graduate women are unemployed, far above the national unemployment rate of 3.2 per cent, it noted.

“Compounding this is the overwhelming inclination toward generic degree programmes with weak job linkages. Of the 3.4 crore students enrolled in undergraduate programmes, 1.13 crore are in B.A. alone, and combined enrolment in B.A., B.Sc., and B.Com exceeds 2 crore. Many pursue these degrees primarily to remain eligible for government job, with 1.86 crore applications for just 55,000 posts between November 2024 to July 2025,” the report titled ‘Reimagining Skilling for Viksit Bharat’ released last week said.

the report titled ‘Reimagining Skilling for Viksit Bharat’ released last week said

NITI Aayog (National Institution for Transforming India) is the apex public policy think tank of the Government of India.

Key challenge for India’s workforce

The report flags a key challenge for India’s workforce: many young people are earning conventional degrees but not necessarily the skills employers need. The report called for greater industry participation and wider use of Public-Private Partnership (PPP) models to bridge the gap between education and employment.

Such partnerships, it said, could help modernise curricula, introduce more job-linked learning and ensure that skilling programmes remain aligned with changing industry requirements and actual employment opportunities.

“This structural imbalance (across degree colleges, ITIs, and polytechnics) underscores the urgency of reimagining higher education through stronger industry participation and Public-Private Partnership (PPP) models, the report suggested. These partnerships are critical to modernising curricula, embedding job-linked learning, and ensuring that skilling remains current, relevant, and connected to real employment outcomes, it said.

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Addressing these needs will require structural shifts in how higher and technical education programmes are designed and delivered, the report suggested.

Move beyond generic degree pathways towards

First, there is a need to move beyond generic degree pathways towards specialised, job-linked programmes, particularly within high-enrolment degrees such as B.A., B.Sc., and B.Com., through applied specialisations (e.g., B.A. Hospitality, B.Com. Analytics, B.Sc. Applied Technology) that are closely aligned with industry demand, it says.

Apprenticeship embedded degree programmes

“Secondly, work-integrated and apprenticeship embedded degree programmes (AEDP) need to be scaled significantly. While frameworks such as AEDP have gained a starting point, adoption remains limited relative to the size of the higher education system, constraining the ability of students to graduate with demonstrable work experience,” says the report

Lastly, the system requires mor flexible delivery formats, including modular, parttime, hybrid, and earn-while-you-learn models, to enable students to combine learning with work, it said.

But the report says that delivering these shifts requires more structured industry participation than is currently embedded in most public higher education institutions.

“Accordingly, focus is to drive industry-led skilling through PPP models and broader private sector engagement, enabling programmes that are outcome-linked, industry-integrated, and modular by design,” it said.

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India’s higher education system faces a fundamental disconnect between what is taught and what the labour market demands.

The report makes the case for moving towards specialised, job-linked programmes in high-growth sectors such as green industries, electric vehicles, and greater focus on apprenticeships, the think tank said that over 90% of graduates in India are employed in roles not aligned with their qualifications.

“India’s higher and technical education system faces a fundamental disconnect between what is taught and what the labour market demands. Curricula in most institutions remain outdated and misaligned with evolving industry needs, resulting in degrees, diplomas and certificates that do not consistently translate into employability,” the report reads



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