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India Skills Report 2026: Transforming India’s Employability Landscape

15.11.2025

 

India Skills Report 2026: Transforming India’s Employability Landscape

 

Context

The India Skills Report 2026 shows rising workforce readiness with employability reaching 56.35%, indicating stronger job alignment, expanding digital skills, and broader industry-academia collaboration across India.

 

About the News

Background

The India Skills Report, conducted by ETS, CII, AICTE, AIU, and Taggd, evaluates employability and skill gaps through nationwide surveys of students, graduates, and employers to guide future-ready education and recruitment.

 

Key Trends Identified

  • Rising Employability

Employability rose to 56.35% (up from 54.81%), marking nearly a 10-point improvement over four years and reflecting better industry relevance.

  • Women’s Employability Surpasses Men’s

Women: 54%; Men: 51.5%. Women lead in BFSI, education, healthcare, and Tier-2/3 regions—surpassing men for the first time.

  • Tech & AI Dominance

Computer Science (80%) and IT (78%) graduates lead due to growth in AI, automation, data analytics, and cybersecurity. India remains a major global AI talent pool.

  • Shift to Skills-First Hiring

Industries prefer micro-credentials, stackable certificates, and practical learning, prioritizing skills over degrees.

  • Rise of Gig & Freelance Work

Gig hiring grew ~38% and now forms 16% of jobs, with rapid expansion expected by 2030.

Opportunities for India

India’s young workforce, digital capabilities, and rising employability can build a global talent hub. Tier-2/3 skill hubs, expanding gig work, and robust industry-academia links can strengthen innovation and reduce metro pressures.

 

Challenges

Urban–rural skill inequity, soft-skill gaps, outdated curricula, digital divide, reliance on foreign tech, and gig-work instability continue to limit inclusive growth and high-quality skilling.

 

Way Forward

Reform curricula for AI and sustainability skills, expand affordable vocational training, improve digital access, mandate internships, upskill faculty, strengthen soft skills, and promote indigenous tech platforms for long-term self-reliance.

 

Conclusion

India is progressing toward a skills-driven workforce with stronger employability and tech readiness. Inclusive access, modern curricula, and robust skilling ecosystems can help India evolve into a global talent leader by 2047.

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