India produces around 8 lakh engineering graduates and an equal number of MBAs every year, churned out from the ever growing number of educational institutions. However, lack of employment remains a major hurdle for them. Jobs are indeed available, but most of these graduates are not fit for employment because they mostly lack hands-on-training and even basic skills. So even after securing 90-95% marks, most students fail to get a good job.
Nasscom (Nov 2009) states the only 25% (that is only 1 out of 4) engineering graduates are employable. International magazine The Economist (Jan 2010) says that only 4.2% of India’s engineering graduates are employable in software product companies, while only 17.8% are fit to work in IT services firm. Business Standard (June 2010) says that the number of unemployable engineers will further increase in the coming years. Additionally, there is also a wide gap between skills of rural and urban students, which is why rural students are pushed further backwards.