Unless India focuses on skilling and unemployability, India’s demographic dividend could become a social liability with frustration creeping in.
HYDERABAD, June 1 (The CONNECT)- As India strives toward becoming a $5 trillion economy, it must confront a pressing and uncomfortable truth: 48% of its graduates are unemployable, according to the India Skills Report.
“Employability is the new literacy. And India must act like it,” according to Kali Prasad Gadiraju, Chairman of Hyderabad based EThames Business School
Every year, over 90 lakh students graduate, yet employers across sectors struggle to find job-ready talent. This alarming gap between education and employability is not just an economic concern—it’s a national emergency says Kali Prasad; Chairman of Hyderabad based EThames Business School
“AI is replacing jobs. But are our graduates even ready for the jobs that exist?”, Gadiraju said addressing media on Friday.
“The era of degree-based hiring is over. Skill-based hiring is the new norm,” declares Kali Prasad Gadiraju, a former EY Partner with 40+ years of global consulting experience.
One crore people are graduating every year, yet a we face a hiring crisis.
Of the one crore graduates India produces annually:
* 15 lakhs are from engineering and medical streams.
* 85 lakh hold general degrees.
* Only 15 lakhs pursue higher education.
* Around 10 lakhs find employment in MNCs or large corporates.
* The remaining 60 lakh are either underemployed or earn as little as ₹15,000/month.
“That is the real challenge,” says Gadiraju. “We are producing degrees, not job-ready professionals.”, he said while interacting with the media in Hyderabad on Friday.
The skill crisis in India is its next social bomb. With over 65% of Indians under the age of 35, India has a demographic edge. But if the youth lack relevant skills, this dividend could become a social liability. Frustration, underemployment, and lost productivity could undermine national progress.
“Employability is the new literacy. The ability to contribute meaningfully in the workplace is as fundamental today as reading and writing,” says Gadiraju.
Who is Failing Whom?
* Graduates unable to clear basic aptitude, reasoning, or English tests.
* Companies forced to spend 3–6 months retraining new hires.
* Students and parents investing years and lakhs of rupees—only to face disillusionment.
What global lessons we can learn from Germany, South Korea, Vietnam? Countries like Germany and South Korea have successfully implemented dual-education models, combining classroom theory with practical apprenticeships. Vietnam, now a rising tech hub, has aligned education directly with industry demand. India needs to urgently adopt these models.
EThames Business School is working on a new model for the Future. It is actively bridging the employability gap by:
* Introducing an industry-integrated curriculum co-created with corporate leaders
* Implementing mandatory internships from Year 1
* Hosting weekly masterclasses with CEOs and startup founders
* Launching AI-readiness programs and international certification pathways
The college has also pioneered short-term skill programs (1.5–2 months) that convert underemployed graduates into employable professionals with higher incomes.
Their unique BPL Meritorious Training Model trains high-potential, low-income B. Com (English medium) students for sector-specific roles—free for students, funded by employers. Sectors trained include hospitality, IT, and upcoming modules in Anti-Financial Crime Training (AML & KYC) for the BFSI sector.
“Every student has the potential of an Elon Musk or Dhirubhai Ambani,” says Gadiraju. “It’s the job of the education system to nurture that.”
EThames has partnered with reputed institutions, to ensure global standards in pedagogy. The result? Over 85% placement success, even among average academic performers.
Policy recommendations: What needs to happen now
- Shift from UGC-heavy compliance to outcome-based learning.
- Incentivize skill-first colleges over infrastructure-focused institutions.
- Make internships mandatory and credit-worthy.
- Launch a National Employability Audit for all higher education institutes.
- Offer tax benefits to companies that invest in student upskilling.
“India cannot afford to wait. Every unemployable graduate is a wasted opportunity,” urges Mr. Gadiraju.
