Prof D Mukherjee
The Indian labour market is currently facing a significant challenge in the face of a skill gap which is detrimental to the adoption of new technologies and the availability of efficient manpower. As the world moves rapidly towards Industry 4.0, the integration of artificial intelligence, data analytics, and automation in various industries is transforming job requirements. However, a considerable portion of India’s workforce remains inadequately skilled, limiting their ability to meet the demands of this technological revolution. Bridging this skill gap is essential not only for enhancing the employability of the job seekers but also for ensuring that industries can harness the potential of cutting-edge technology for growth and innovation. The skill gap in India is not merely a matter of inadequate training; it is the result of several interrelated factors. Firstly, the education system in India, particularly at the tertiary level, is often theoretical rather than practical, focusing more on rote learning than on critical thinking or practical application of knowledge. This leads to graduates who possess degrees but lack the skills that employers require in areas such as digital literacy, problem-solving, and technical proficiency. Secondly, the rapid pace of technological advancement means that traditional educational curricula are not always updated in time to reflect the needs of emerging industries. As a result, graduates may find themselves with outdated knowledge in fields that have quickly evolved. This widening gap between industry requirements and workforce capabilities hampers India’s ability to compete globally and fully embrace technological advancements. For last two decades or more, Indian tertiary education delivery is private sector dominant and they have mostly been observed to achieve the purpose of privatization of higher and university education and this is the high time to assess the effectiveness of this policy. Primarily, state run universities are observed to lack in infrastructure and providing conducive environment and private run institutions lack in having accountability when the regulatory authorities are mostly observed to remain indifferent between policy making and policy enforceability . The higher education dissemination suffers from many unaddressed issues that act as the deterrent in knowledge creation and producing skilled manpower. This write highlights few of such glaring issues .
To cite instance, Indian private educational institutions often present themselves as offering competitive salaries “as per UGC/AICTE norms,” but in reality, the situation is quite different. Many private universities and colleges, under the guise of adhering to regulatory pay scales, fail to provide adequate compensation to their faculty. This not only violates the trust of the educators but also has far-reaching consequences for the quality of education imparted to students, resulting in an unskilled and underprepared workforce. While private institutions claim to follow UGC or AICTE pay scales, the truth is that many fall far short of these standards. The 7th Pay Commission provides clear guidelines on salary structures, including allowances such as DA, HRA, transport, and research incentives. However, private institutions often bypass these provisions. In many cases, faculty members are denied even basic allowances that are essential for their sustenance and professional growth. DA meant to adjust for inflation, is frequently not paid. Similarly, housing and transport allowances are either excluded from the package or grossly underpaid. Faculty are also deprived of research grants, which are essential for conducting studies, attending conferences, and publishing papers-activities that are crucial for both personal academic growth and contributing to the institution’s reputation. Even the basic salary is sometimes manipulated, with institutions paying significantly less than what is mandated under the 7th Pay Commission and even 5th/6th commission basic pay is still inregular practice, and not to speak of 7th Pay Commission. Another pressing issue is the arbitrary assignment of academic designations. Many private colleges appoint faculty as Assistant Professors, Associate Professors, or even Professors without ensuring they meet the eligibility criteria set by UGC or AICTE. For instance, a position such as Associate Professor typically requires a certain number of years of teaching experience, along with significant research publications and contributions to academia. However, many private institutions disregard these criteria, often awarding these titles to underqualified individuals in a bid to fill vacancies quickly or reduce salary costs. On the contrary, state run universities are heavily politicized and very often observed to have been lost shy of because frequent political intervention in teaching-learning and academic governance .
This practice dilutes the overall academic standard of the institutions. Underqualified faculty members are less likely to engage in research or publish high-quality academic work, which directly impacts the quality of education that students receive. This ultimately leads to the production of graduates who lack the necessary skills and knowledge to compete in the workforce. These systemic issues lead to the generation of a substandard workforce. When educators are poorly compensated and underqualified, the quality of instruction inevitably suffers. Students are deprived of the chance to learn from knowledgeable, experienced faculty, which in turn reduces their ability to gain the critical thinking, problem-solving, and technical skills required in today’s competitive global economy. Moreover, without proper research opportunities and publications, faculty members are unable to stay updated with the latest developments in their fields. This creates a significant knowledge gap between what is taught and what is required by industries, exacerbating the skill gap in India. Graduates of these institutions find themselves ill-equipped to handle the demands of modern technology-driven workplaces, leading to low employability rates.
A key issue in India’s education crisis is the lack of regulatory enforcement. Despite guidelines from bodies like UGC, AICTE, and the Bar Council of India (BCI) on faculty recruitment and compensation, private institutions often disregard these rules without facing consequences. Regulatory bodies fail to enforce compliance, leading to a widening gap between policy and practice. This contributes significantly to the decline in education quality. Without strong oversight, private institutions continue exploiting faculty while delivering substandard education to students. A glaring reference is the unemployability of engineering graduates, with a 2019 Aspiring Minds report showing over 80% of graduates lack essential skills for core engineering jobs and the picture is hardly different while this write up is getting ready for the press. Causes include outdated curricula, inadequate faculty, and limited practical learning opportunities. Many private engineering colleges disregard educational standards, offering low pay and arbitrary roles for faculty, which contributes to the problem. In contrast, private institutions in countries like the U.S. have strict hiring processes, competitive salaries, and a commitment to quality, helping them maintain high academic standards and attract skilled educators. To address India’s skill gap, the education system needs a well-structured curriculum and qualified faculty capable of teaching both theory and practice. However, low salaries in Indian private institutions deter talented educators, who often opt for better-paying corporate jobs. Furthermore, a lack of emphasis on skills development and innovation further undermines education quality. For India to develop a future-ready workforce, its higher education system must focus on attracting qualified teachers, fostering continuous learning, and aligning teaching standards with global benchmarks.
India faces significant challenges in education, particularly when compared to developed countries like the United States, Germany, and Singapore. These nations boast robust education systems that prioritize both technical and soft skills, preparing graduates to meet the demands of high-tech industries. They also invest heavily in research and development, ensuring that their institutions remain at the forefront of innovation. In contrast, India’s education system suffers from underfunding, outdated infrastructure, and bureaucratic hurdles, which contribute to a widening skill gap.To address this issue, India requires coordinated efforts from educational institutions, regulators like the University Grants Commission (UGC), and policymakers. Updating curricula to reflect technological advancements and fostering collaboration between academia and industry through internships, apprenticeships, and real-world learning experiences are essential steps. Additionally, government initiatives should focus on increased investment in key technological areas such as artificial intelligence, robotics, and data science. Policies encouraging private companies to partner with educational institutions to develop skill-based programs and fund research are crucial for bridging the gap.
Despite claims by private institutions that compensation is not a constraint for deserving candidates, many educators face low wages and poor working conditions. This exploitation not only discourages talented faculty but also results in a lower quality of education. Private institutions must view education as a societal responsibility and offer competitive, transparent remuneration to attract and retain the best talent. Regulatory bodies like the UGC and AICTE must enforce compliance with pay structures and recruitment norms. If India can improve its educational quality, align curricula with industry needs, and create an environment that attracts skilled educators, it will be well-positioned to address the skill gap. These reforms are essential to ensuring that India’s workforce can adopt new technologies and remain competitive in the global economy. To call a spade a spade, India is attributed with the tag of the third-largest higher education system -in terms of quantity only and quite far from producing quality manpower. It is imperative for India to adopt stringent enforceability-accountability-depoliticising campuses and ensure cheek-and balances the syndrome of white-collar exploitation without farther delay.
(The author is an Independent Researcher, Educationist and a Management Scientist)
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