India has made notable strides in expanding access to higher education, especially among young people aged 15 to 29, according to the State of Working India 2026 report by Azim Premji University. The findings highlight a steady shift of youth from agriculture to industry and services, along with a reduction in gender and caste disparities in education.
The report notes that today’s youth are more educated, aware, and aspirational than ever before—marking a significant achievement for the country’s development journey. However, it also raises concerns about how effectively this growing talent pool is being absorbed into the workforce.
Despite rising enrolments, faculty numbers have not kept pace. While AICTE recommends 15–20 students per teacher, private colleges average around 28 students per teacher, and public institutions nearly 47, raising concerns over the quality of education.
The expansion of Industrial Training Institutes (ITIs), which have grown nearly 300% since the 2010s—largely driven by private players—has also come with declining institutional quality, particularly in the private sector.
Encouragingly, higher education has become more inclusive. The share of students from the poorest households increased from 8% in 2007 to 15% in 2017. However, financial barriers still limit access to high-cost professional courses like engineering and medicine, which remain dominated by students from wealthier backgrounds.
A major concern flagged by the report is rising unemployment among graduates. Nearly 40% of individuals aged 15–25 and about 20% in the 25–29 age group remain unemployed, with only a small percentage securing stable jobs within a year of graduation.
While graduates generally earn twice as much as non-graduates at entry level—and the income gap widens over time—salary growth for young male graduates has slowed since 2011. On a positive note, the gender pay gap has narrowed, and more young women are entering sectors like IT, automobile manufacturing, and business services.
Overall, the report paints a mixed picture—celebrating India’s educational progress while underlining the urgent need to improve job creation, institutional quality, and workforce integration.
