3.5 million roles by 2026: Can India’s engineering ecosystem keep up?

Despite producing the world’s second-largest pool of engineers, India faces a paradox—while companies struggle to find skilled talent, millions of graduates remain unemployed or underemployed. The root of the problem lies in an outdated curriculum, rote-based learning, and a lack of hands-on industry exposure.

With emerging technologies like AI, IoT, and quantum computing redefining industries, the need for a dynamic, skill-focused education system has never been more urgent.

A 2023 study by Aspiring Minds revealed that nearly 50% of Indian engineering graduates lack the necessary industry-relevant skills, highlighting the urgent need for curriculum modernization. Additionally, a NASSCOM report suggests that India needs approximately 3.5 million digitally skilled professionals by 2026 to meet growing industry demands. Experts across academia and industry emphasize restructuring curricula, enhancing industry collaboration, and leveraging emerging technologies to keep pace with global trends.

This article explores how India’s top engineering schools are adapting to these changes and what the industry expects from fresh graduates.

Dr. Ramesh Darbha, Head of MassMutual India, highlights that Indian technical institutes are highly attuned to evolving industry demands. Through strategic partnerships with industry bodies and experts, these institutions continually update their curricula to align with technological advancements. Collaborations with companies provide students with hands-on exposure to real-world applications, ensuring they remain competitive in the global workforce.

One major shift in engineering education is the increasing emphasis on AI, cloud computing, and emerging tech specializations.

According to a report by the All India Council for Technical Education (AICTE), over 60% of engineering colleges are now integrating AI and data science courses to prepare students for the future. Institutions are also incorporating digital platforms, virtual labs, and AI-driven coursework to create engineers capable of addressing real-world challenges. These changes reflect a decisive move toward a blended learning model, where theory and practical application go hand in hand.

Dr. Darbha further notes that interdisciplinary learning is gaining prominence. Modern engineering curricula now incorporate business, humanities, and design thinking, ensuring that graduates develop problem-solving skills beyond technical expertise. A study by McKinsey highlights that engineers with interdisciplinary knowledge are 40% more likely to secure leadership roles in technology firms.

“India’s top engineering institutions are increasingly aligning with industry needs by integrating emerging technologies such as AI, cloud computing, and cybersecurity into their curricula,” says Shuchita Shukla, Head of Talent Acquisition – India, GlobalLogic.

According to Prince Jaykumar, EVP and Global Head of Talent Acquisition at HCLTech, common deficiencies among new graduates include ineffective communication skills, lack of critical thinking and problem-solving abilities, and limited hands-on technical proficiency. To address these challenges, technology schools (T-Schools) must adapt their curriculum and training methodologies to align with industry needs.

The Role of Internships and Industry Collaborations

Internships are no longer just a brief introduction to the workplace—they have evolved into structured, immersive experiences. According to Dr. Darbha, experiential learning through hands-on projects is the best way to develop technical expertise and gain workplace exposure. Internships at MassMutual India focus on domain knowledge, problem-solving, and workplace culture, including diversity, equity, and inclusion.

Similarly, Hexagon R&D India takes an integrated approach by embedding interns into live projects, providing mentorship, and organizing hackathons. Executive Manager of Talent Acquisition, Narane Gundabathula, emphasizes that real-world applications and skill development through industry collaborations make internships far more impactful. Such initiatives help bridge the gap between academic learning and the skills required in the job market.

According to a NACE survey, graduates with internship experience receive 20% more job offers than those without.

"T-Schools need to align their curriculum and training methods with the ever-evolving needs of the industry. They can offer communication workshops, public speaking courses, and writing labs to solve the communication issues," says Jaykumar.

"Integrating case studies, real-world problem-solving exercises, and critical thinking modules, along with intensive lab sessions and industry-led workshops and certifications, can help bridge this gap," he adds.

On the other hand, Professor Rajeshwari Krishnamurthy of Great Lakes Institute of Management provided invaluable insights into the institute's pioneering approach of the institute, highlighting its commitment to equipping future leaders with the skills necessary to navigate an AI-driven landscape.

"We recognized the importance of analytics long before it became a buzzword," Professor Rajeshwari explained. "Our goal was to not only introduce these technologies but to integrate them across all disciplines, ensuring our students understand their practical applications in real-world scenarios."

The "HOOKAH" Framework: Deciphering AI's Impact

Central to Great Lakes' approach is the "HOOKAH" framework, a mnemonic that encapsulates AI's profound impact on marketing and business operations. This framework highlights:

· Hyper-personalization: AI's ability to deliver tailored experiences at scale, leveraging vast amounts of data.  

· Unstructured data analysis: The power to process diverse data types, including text, images, and audio, for comprehensive insights.  

· Content generation and concept development: AI's role in rapidly generating content and prototyping new products.  

· Automation: The streamlining of operational processes, from customer service to advertising.  

"The 'HOOKAH' framework helps us illustrate how AI is revolutionizing business practices," Professor elaborated. "It's about understanding how these technologies can be leveraged to create value and drive innovation."

"We don't shy away from the ethical dilemmas," she asserted. "We believe it's our responsibility to equip students with the critical thinking skills necessary to navigate these complex issues."

Addressing Skill Gaps in Fresh Graduates

Despite the improvements in engineering education, fresh graduates often lack real-world problem-solving skills and industry-specific expertise. Narane Gundabathula notes that due to limited exposure to practical challenges, students struggle with applying theoretical knowledge in real scenarios.

To address these gaps, T-Schools must adopt a more integrated approach—combining academic rigor with industry exposure. Regina Thomas, Associate Vice President of Talent Acquisition at Encora, stresses the need for structured internship programs, industry-led curriculum design, and the inclusion of real-world case studies. Soft skills like problem-solving, collaboration, and agile methodologies are also becoming increasingly critical for success in modern digital engineering roles.

“Fresh graduates often lack hands-on experience with AI-driven development, cloud platforms, scalable system architectures, and DevOps. While they have theoretical knowledge, there is a gap in problem-solving, adaptability, and real-world application of technology,” Shukla points out.

"Our goal is to ensure that our graduates are not just knowledgeable but also skilled and adaptable," Professor Rajeshwari emphasized. "We want them to be able to hit the ground running on day one." Great Lakes' commitment to industry readiness extends beyond theoretical knowledge. The institute incorporates hands-on labs, case studies, and practical exercises into its pedagogy, allowing students to apply their skills in simulated and real-world scenarios.

Industry reports indicate that 75% of employers in India struggle to find job-ready engineering talent, reinforcing the need for practical learning experiences. Additionally, a LinkedIn study found that 92% of hiring managers believe soft skills are as important as technical knowledge in engineering roles.

Micro-Certifications, Hackathons, and Continuous Learning

With rapid digital transformation across industries, certain skills and roles are emerging as crucial for the future workforce. “The future of hiring will revolve around expertise in AI/ML, cloud computing (AWS/Azure/GCP), data engineering, cybersecurity, and full-stack development. We are also seeing a rise in demand for DevOps Engineers, AI/ML Engineers, Data Scientists, and Embedded Systems Engineers,” Shukla highlights. 

“Recognizing these industry shifts, GlobalLogic has structured its hiring framework around predictive analytics and AI-driven assessments to identify talent with these high-demand skills. By leveraging AI-powered predictive hiring and internal talent upskilling programs, the company ensures its workforce is future-ready.” she continues.

Recruiters today prioritize candidates who demonstrate adaptability, hands-on problem-solving, and a commitment to continuous learning. At Hexagon R&D India, micro-certifications, boot camps, and hackathons play a crucial role in the hiring process. These programs provide real-world training and validate specialized skills, making graduates more industry-ready.

Encora has also recognized the need for an AI-augmented workforce. As AI-powered automation transforms software development, fresh graduates must demonstrate not only technical knowledge but also the ability to work alongside AI tools. This includes solving real-world problems using AI, critically analyzing automation, and optimizing AI-generated solutions.

Expanding Engineering Education Beyond Metro Cities

A key challenge in India’s engineering education landscape is ensuring accessibility for students in Tier 2 and Tier 3 cities. Dr. Darbha emphasizes the importance of industry-academia-government collaborations in bridging this gap. Initiatives such as MassMutual India’s partnership with the Telangana State Social Welfare Residential Educational Institutions Society (TSWREIS) aim to provide internships and skill development training to underprivileged students, particularly girls.

Regina Thomas suggests that sustainable ecosystems must be developed in smaller cities through digital infrastructure investments, bilingual training programs, and virtual learning platforms. Industry partners can play a crucial role by designing job-oriented curricula, setting up local centers of excellence, and mentoring students from rural backgrounds.

GlobalLogic actively engages with talent through co-branded hackathons, industry bootcamps, and AI-driven skill assessments. Furthermore, the company’s Outreach Programs—such as FEM Bloom, Geeking with GL, and diversity hiring drives—extend opportunities to candidates across Tier 1, Tier 2, and Tier 3 cities. These initiatives not only expand the talent pipeline but also foster inclusivity by providing mentorship, training, and hiring opportunities for underrepresented groups.

The Future of Hiring: AI-Enabled Engineers

For students aspiring to succeed in the technology sector, aligning their skill sets with industry requirements is crucial. Prince Jaykumar offers the following advice:

Develop Technical & Soft Skills: "Develop both technical expertise and soft skills like communication, teamwork, emotional intelligence, and problem-solving."

Engage in Real-World Projects: "Apply theoretical knowledge into real-world projects through hackathons, open-source contributions, and internships."

Stay Updated on Emerging Technologies: "Keep up with the latest tools and technologies by enrolling in certification programs and attending workshops."

Embrace Lifelong Learning: "Adapt to the evolving tech landscape by continuously upgrading your knowledge."

Seek Mentorship: "Seek mentorship from leaders for guidance and industry insights."

Build a Professional Network: "Engage in industry events and online communities to expand your professional network."

By taking proactive steps to enhance their skills, engineering students can significantly improve their employability and long-term career prospects in the tech industry.

As Generative AI (GenAI) becomes more prevalent in coding and problem-solving, companies are evolving their hiring and training strategies. At Encora, live coding tests with AI copilots are being used to evaluate candidates’ ability to refine, validate, and enhance AI-generated code. Freshers are assessed based on their problem-solving skills, teamwork, and ability to integrate AI-driven insights into scalable solutions.

Encora’s training programs now embed AI-assisted learning modules, ensuring that every engineer—regardless of role—has a foundational understanding of AI and machine learning. This shift reflects a broader industry trend: AI is not replacing engineers but redefining how they work. The focus is on developing AI-fluent engineers who can balance automation with human expertise.

Shukla succinctly puts it, “Bridging the gap between academia and industry is no longer optional—it is a necessity for ensuring a future-ready workforce.” Through a collective effort between academia and industry leaders, India’s engineering institutions can create a talent pool that is well-equipped to drive the country’s digital transformation.

The Road Ahead

As India’s engineering institutions continue to evolve, the key to success lies in stronger collaborations between academia, industry, and the government. By fostering real-world learning experiences, enhancing curriculum relevance, and expanding access to engineering education, India can create a workforce that is not only technically skilled but also innovative, adaptable, and future-ready.

The message from industry leaders is clear—engineering graduates must embrace continuous learning, develop problem-solving skills, and stay ahead of technological advancements. With the right ecosystem in place, India is well on its way to becoming a global hub for engineering talent.