-Reshma Ravishanker

Indian graduates are demonstrating a strong aptitude for Artificial Intelligence & Machine Learning roles, with a 46.1% employability rate, the highest among all technical roles assessed according to a recent study.

 Mercer | Mettl’s India’s Graduate Skill Index 2025, a new study provides an analysis of Indian graduate employability amidst the rise of AI and automation.

 The research, encompassing data from over 2700 campuses and over 1 million learners, reveals a complex landscape of both promising adaptability and persistent skill gaps.

The report highlights a marginal decline in overall employability to 42.6% from 44.3% in 2023, primarily driven by a decrease in employability for non-technical roles according to the study.

This shift highlights the increasing demand for specialized skills in an AI-driven job market, while also emphasizing the need for graduates to strengthen their foundational skills across various domains.
 
Among the shortcomings, it was noticed that Indian graduates lacked critical soft skills, creativity. It was found that 50% of graduates possess soft skills needed for AI/GenAI collaboration, but creativity needs improvement (44.3% employability). Stronger areas are communication (55.1%), critical thinking (54.6%), and leadership (54.2%).

With a 46% employability rate, learning agility is vital for navigating the evolving tech landscape. Tier 1 Colleges maintain an edge, but potential across tiers: Tier 1 college graduates lead in employability (48.4%), followed by Tier 2 (46.1%) and Tier 3 (43.4%) institutions, but potential exists across all tiers, especially in specialized tech areas. However, Tier 2 colleges excel in UI/UX developer roles (58.3% employability). 

Even as several states such as Karnataka and Maharashtra are home to bext ranked universities, regional disparities persist. Delhi has the highest employability (53.4%), followed by Himachal Pradesh and Punjab (51.1%). Targeted initiatives are needed to address regional skill gaps. Uttarakhand and Jharkhand also perform well (50% and 49.6% respectively).

Commenting on the report, Siddhartha Gupta, President of Mercer India, states that, “The Mercer | Mettl India’s Graduate Skill Index 2025 provides a comprehensive analysis of job readiness among Indian graduates, based on an extensive evaluation of data of over 1 million students spanning 2,800 skill sets.

 In 2025, the employability rate for Indian graduates stands at 42.6%, reflecting a slight decline from 44.3% in 2023, primarily due to evolving industry expectations. However, there has been significant progress in employability for technical roles as colleges and students increasingly focus on developing skills that meet market demands.