Higher education in India is not broken—but it is clearly under pressure to change. For years, the system has focused on delivering degrees. Today, the expectation is different. Students want an education but also expect to get something out of it. The gap between the education provided at educational institutions and what employers want has grown too large to ignore. The Ratan Tata Maharashtra State Skills University (RT-MSSU) demonstrates this in India. It is not just another university offering new courses. It reflects a change in how education itself is being structured.

The Reality: Degrees Are Increasing, Employability Isn’t

India produces millions of graduates every year. Every year, India produces millions of graduates and in theory, they provide a strong labour force; however, this is more complicated in actuality. 

Data from the India Graduate Skill Index shows that only 42.6% of Indian graduates have the skills necessary to be employable. Even after improvements are made, employability rates are estimated to fall between 54 – 56% in the years 2025 – 2026, and therefore, nearly half of the graduates are not completely ready to work upon completing their relevant degree program.

This gap exists because:

• Students understand concepts but struggle to apply them
• Soft skills like communication and problem-solving are weak
• Industry exposure during college is limited

The result is simple—graduates have degrees, but companies still need to train them from scratch.

The Skill Gap Problem in Numbers

To understand why change is happening, look at the numbers:

Metric	Data
Overall employability (2026)	~56.35%
Employability (low estimate reports)	~42.6%
Engineering employability	~70% (top branches higher)
MBA employability	~70–78%
Graduates lacking soft skills	Major contributing factor

These numbers tell a clear story. Even in the best-performing streams, employability is not universal. And outside top disciplines, the gap becomes wider.

The issue is not access to education anymore. It is the quality and relevance of that education.

Why Traditional Education is Not Working

Most universities continue to operate within the traditional model of education where a student goes into a lecture hall to hear a professor teach theory and then writes an exam. While obtaining a degree can provide the student with knowledge, it does not always equip the student with practical skills; below are three examples of how traditional education does not provide practical skills: 

• There is usually little to no opportunity for students to transition into the workforce (e.g., many students can learn about business models but are unable to implement them in the real world); 
• As a general rule, students will not have any real world experience until after they get their degree (e.g., most universities offer optional internships); 
• The evaluation method typically favours the student who memorises knowledge as opposed to applying the knowledge when taking an exam. Many graduates believe they are prepared to work, however they are not prepared for work after they complete their program.

RT-MSSU’S Approach Is An Integration Of Learning And Work

At RT-MSSU, we have chosen a unique approach to education and work by integrating them rather than treating them separately. Students are expected to take ideas learned in class to their workplace during their time as a student. We achieve this through the following methods:

• Project-based learning.
• Industry-related assignments.
• Co-op placements as part of the curriculum.

The philosophy is that when you learn something today, you should be able to apply it tomorrow — not months or years later. The result is a reduction in the gap between theory and application.

Industry-Linked Curriculum: A Shift In How Education Is Delivered

The biggest difference in what we do at RT-MSSU is how we design our courses. Traditional course materials are updated every few years; by the time educators provide them to their students, the needs of the industry have advanced beyond what the student is learning or will learn after completion of their studies.

At RT-MSSU, we have involved industry professionals in developing our curriculum so our students are learning what employers want. Some examples of industry trends towards which employers are moving include:

• Digital and data-oriented skills
• Skills related to AI, technology, etc.
• Excellent communication and critical-thinking skills

In addition, various studies have indicated that, due to advancements in AI, cybersecurity, and data, these will soon be essential tools for prospective job seekers. RT-MSSU has incorporated these trends into our students’ coursework to prevent them from studying irrelevant materials.

The Core Difference in Skill-Based Education is How Students Learn

Active Learning – Learning by Making is taking the Place of “Simply Listening” to a Lecture.

The use of Hands-On Learning Creates two primary effects:

1. Application of a Concept Creates a Higher Level of Understanding than Memorization.
2. The Previous Experience of Working on Actual Problems Provides Students with Greater Self-Confidence and Readiness for the Workplace Upon Graduation.

Employers are also Seeking to Hire Individuals Who Have Experience Applying Skills and Knowledge.

Early Career Clarity: A Major Advantage

Many students in traditional systems face a common problem—they don’t know what they want to do until very late.

Skill-based education changes this.

At RT-MSSU, students are exposed to real work environments early. This helps them understand:

• What different roles involve
• What skills they enjoy using
• Where they want to focus

Instead of making career decisions after graduation, students start developing direction during their course.

This reduces confusion and improves long-term outcomes.

The Importance of Soft Skills: The Missing Component

While a lack of technical knowledge is a key failure for graduates in India, a more significant cause of employability issues is due to a lack of soft skills.

Many reports have been shared demonstrating that graduates are missing the ability to communicate effectively, be adaptable, and solve problems.

RT-MSSU addresses the lack of soft skills by incorporating soft skill training into student learning in addition to being an optional extra activity, as opposed to treating them as optional extras.

RT-MSSU encourages students to:

1. Present ideas
2. Collaborate with others in group settings
3. Engage in actual problems from the real world

Through these types of experiences, students develop skills that cannot be acquired solely through theoretical training.

Evaluating Student Capability

An additional significant change in how students are assessed is the change of how students are assessed in the traditional system where exams make up the majority of evaluations,while the exams are an essential evaluating method, the exams do not adequately indicate whether or not students can apply knowledge.

At RT-MSSU, assessment uses a more broad-based, holistic approach; as opposed to exams, RT-MSSU conducts:

1. Project work

2. Practical assignments

3. Continuous assessment

The variety of assessments at RT-MSSU provides a more accurate representation of students’ abilities while also encouraging continuous engagement rather than preparing for exams at the last minute.

The Bigger Shift: India Moving Toward Skill-Based Education

The larger change across India is the shift from degree to skill-based educational systems in response to technology/automation/competition (our young population & rapid industrial evolution also contribute to this).

India’s industrial evolution has rapidly changed the educational landscape in the country. Many industry reports and some government policy initiatives have emphasised the importance of:

1) Skill development,

2) Industry collaboration,

3) Practical training.

What This Means for Students

It is evident from these trends that education in India will transition from degrees/degree titles and focus on skills as a result of the way students will make decisions. Students will need to consider the following three questions when selecting courses:

1) What skills will I learn,

2) How much work experience will I have when I complete the course, and

3) How prepared will I be for the workforce.

As such, skill-based education has a much more direct connection between learning and career.

While there is still effort required to complete an education, the effort required to complete an education is now more appropriate to help the graduate transition from education into employment.

Conclusion

Education in India and the related parameters surrounding it are changing, albeit slowly. Infrastructure built over decades does not happen overnight.

Institutions such as RT-MSSU set a new standard in education with an outcome-focused technical skill development model instead of assessing an individual based simply on course completion.

Data indicates the direction we are going—employability has increased, but there still exists a disparity. The future direction of education will be based on how well that disparity is closed.

Skill based education is not a trend, but rather a reaction to a very real problem.

And for students beginning their studies in higher education today, understanding this shift may be more important than their actual degree.