India’s Tech Education Problems- Explained Pointwise

India, home to the third-largest startup ecosystem (DPIIT) and a booming IT industry, is facing a paradox—while the demand for tech talent is surging, the quality of tech education in India is declining. According to recently released India’s Graduate Skill Index 2025 by Mercer-Mettl report there has been a drop in overall employability from 44.3% in 2023 to 42.6% in 2024. Similarly, TeamLease Digital’s report finds that only 45% job seekers are employable in Indian IT-tech sector due to skill crunches. This mismatch between tech education skills and industry requirements raises concerns about India’s ability to sustain its digital economy.

What is the present status of Tech Education in India?

1. Market and Valuation- The EdTech sector is valued at $7.5 billion (2024) and is projected to reach $29 billion by 2030, growing at a CAGR of 25.8%, with over 100 Mn paid users. Skill development, K12, test preparation, and online certification are the fastest growing subsegments of India’s edtech sector. This space has five unicorns: PhysicsWallah, LEAD, Eruditus, upGrad, and Vedantu.

2. Declining Quality of Engineering Institution- Of 3,500+ engineering colleges, over 50% face low enrolments due to poor faculty, outdated curricula, and lack of research infrastructure. Also, 2/3 MTech seats in India’s engineering colleges lie vacant (AICTE Report 2023). NAAC’s 2023 assessment found that only 10% of institutions offer tech programs with an ‘A+’ rating (Academic Bank of Credits, Ministry of Education).

3. Skill Gap and Outdated Curriculum- Indian graduates lack industry-relevant skills, especially in AI, blockchain, and cybersecurity, with only 46% of graduates employable in AI/ML-driven roles (Mercer-Mettl). Universities still focus on rote learning rather than problem-solving, coding proficiency, and innovation.

4. Limited AI Research and Patents- According to the Stanford AI Index 2024, China produced 4x more AI research papers than India. The US remains the leader in high-impact AI research. India holds <1% of global AI patents, while China leads with 60%.

What is the significance of Tech Education in India? 

Driving Economic Growth- The IT sector contributes 8% to GDP, employing 5M+ professionals (NASSCOM 2024). A well-trained tech workforce could add $1 trillion to India’s economy by 2030 (McKinsey 2023).

Boost to Innovation and Startups- India ranks 3rd globally in startups ecosystem, yet only 30% of tech startups survive beyond three years due to lack of expertise.

Enhanced Employability and Global Competitiveness- 2024 WEF Report ranks India 112/130 nations in terms of workforce readiness for Industry 4.0. With the rise of AI-driven automation, tech skills are crucial to prevent large-scale unemployment.

Strengthening National Security- India is facing rising cyber threats, yet there are only 10,000 cybersecurity professionals graduate annually, far below the 1 million demand projected by CERT-IN (2024). Improved tech education will lead to strengthening of national security.

Increased Demand of tech professionals- Global capability centers (GCCs) and non-tech sectors like BFSI, communication, media and technology, retail and consumer business, life sciences and healthcare, engineering research and development, and energy and resources, have expanded entry-level hiring of tech professionals.

What are the challenges in tech education in India?

1. Doctoral Deficit- Despite producing the world’s second-highest number of engineering graduates, India lags behind the US and China in doctoral programmes. The numbers reveal a stark disparity, as India has only one-third of the number of PhD holders compared to the US and one-fifth compared to China. This shortage at the advanced research level directly impacts innovation and intellectual property creation.

2. Industry-Academia Gap- Only 7% of colleges have strong industry tie-ups (AICTE 2023). Internship opportunities in tech sector remains scarce.

3. Faculty Shortage and Quality of Teaching- 35% of engineering faculty positions are vacant (AICTE 2024), with many professors lacking industry experience.

4. Brain Drain and Migration of Tech Talent- Over 50,000 Indian engineers migrate annually to the US, Canada, and Europe for better opportunities (MEITY Report 2023). India struggles to retain top talent due to low salaries, research limitations, and bureaucratic hurdles.

5. Limited Focus on Emerging Technologies- Only 15% of universities offer courses in AI, blockchain, and quantum computing (AICTE 2024). While DeepSeek-V2 and GPT-4 are globally competitive, India has no major homegrown generative AI product at scale.

6. Digital Divide in Tech Education- Rural students struggle with poor internet access and limited exposure to coding and IT skills. Only 18% of government schools offer basic computer education (ASER Report 2023).

What steps have been taken for reforming the tech education landscape of India?

Policy Initiatives & Implementation

1. National Education Policy (NEP) 2020- Introduction of coding from Class 6, multiple entry-exit options in higher education with focus on experiential learning.

2. Skill India Digital Hub (SIDH)- A comprehensive digital platform designed to synergize and transform the skills, education, employment, and entrepreneurship landscape in India.

3. Development of AI-Powered Educational Platforms- Collaborations between the government, educational institutions, and tech companies have led to the creation of AI-powered platforms such as DIKSHA, NISHTHA Online, and SWAYAM.

Infrastructure Development

1. Smart India Hackathon- Engaged 2M+ students, solved 500+ real-world problems, and generated 200+ startup ideas since 2017.

2. Technology Innovation Hubs- Under the NM-ICPS, 25 Technology Innovation Hubs (TIHs) have been established in reputed institutes across the country and each TIH has been assigned a Technology Vertical in the areas of advanced technologies.

Industry-Academia Partnerships

1. Future Skills PRIME- NASSCOM-Meity partnership aimed at making India a Digital Talent Nation.

2. Infosys Springboard- Infosys launched this platform to provide free online courses in programming, AI, and data science to students and professionals.

What should be the Way Forward?

1. Industry-Aligned Curriculum and Skilling Initiatives-
a. Mandating AI, data science, and cloud computing as part of core engineering courses.
b. Collaborations with tech giants like Google, Microsoft, and TCS for updated course modules and certifications.
c. Government programs like Skill India and NASSCOM’s FutureSkills Prime should be scaled up.

2. Strengthening Research and Innovation-
a. Increasing R&D spending from 0.7% to 2% of GDP to match global standards.
b. Encouraging tech startups in universities with dedicated incubators.
c. Incentivizing patent filings through subsidies and mentorship programs.

3. Digital Infrastructure and Accessibility- Expanding high-speed internet and smart classrooms in rural India. Free or subsidized coding courses and e-learning platforms for underserved students.

4. Faculty Development and International Collaboration- Upgrading faculty training programs with industry exposure. Hiring foreign professors and fostering global university tie-ups.

5. Bridging the Gender Gap in STEM- Scholarships and mentorship programs for women in tech. Mandatory diversity policies in educational institutions.

6. Retaining Indian Talent- Higher salaries, tax incentives, and research grants to keep top engineers in India. Creating more AI & deep-tech job opportunities to reduce brain drain.

India stands at a critical juncture—either tech education becomes a bottleneck or a launchpad for global leadership. By reforming curricula, fostering industry-academia collaboration, and investing in emerging technologies, India can position itself as a leader in innovation and economic growth. The futureDESIGN, futureLABS, and futureSKILLS strategy aligns with India’s vision for Viksit Bharat 2047, making technology the driving force for the nation’s future.