CEO speaks: From Grades to Skills: Rethinking Education for Employability

India stands at a critical juncture in its education system today. As the country aspires to be a global economic powerhouse, its workforce must be equipped with not just knowledge but the skills to thrive in a rapidly evolving marketplace. Unfortunately, statistics paint a very worrying picture: only 51% of Indian graduates are considered employable by industry standards, according to the Economic Survey 2022-23. This significant gap between academic degrees and professional readiness calls for a bold and urgent rethinking of pedagogy and assessment practices.

Such systemic transformation demands a focus on three crucial areas: competency-based education, skill-first learning, and innovative assessment methods. Equally important is the active partnership of industries in shaping education systems and funding private institutions that produce the majority of India’s graduates. Together, these interventions can create a win-win scenario for both educational institutions and the corporate world.

Competency-based education (CBE) shifts the focus from rote learning to the development of tangible, measurable skills. It emphasises mastery of specific competencies—critical thinking, problem-solving and teamwork—over merely completing course credits. CBE tailors learning to individual pace and capability, ensuring that students graduate only when they are truly skilled.

Skill-first learning complements this approach by aligning curricula with market needs. For instance, programming boot camps and certification courses in data science or cybersecurity are now more valued by employers than traditional degrees. Yet, India’s education system has been slow to embrace such models.

Countries like Finland and Singapore offer compelling examples of skill-first learning. Finland’s emphasis on vocational training and hands-on learning has made its students among the most industry-ready globally. Singapore’s Institute of Technical Education is lauded for close collaborations with industries to ensure students acquire skills in demand. India must draw inspiration from these models and localise them for its unique context and requirements. This shall not be easy, but it’s imperative that this be done.

However, teaching new skills is only part of the solution. We must also critically assess and rethink how we assess our students. Traditional exams and grades are inadequate in gauging practical abilities or creativity. Instead, experiential assessments and portfolios provide a more comprehensive evaluation of a student’s capabilities. Portfolios allow students to showcase their projects, internships and certifications, offering potential employers tangible evidence of their skills. Experiential assessments, such as case studies, role-plays, and live projects, test a student’s ability to apply theoretical knowledge in real-world scenarios. Universities worldwide are embracing these methods. For instance, MIT encourages applicants to submit “Maker Portfolios” to highlight their innovative projects. In India, some institutions, including Sister Nivedita University (SNU), are introducing outcome-based education (OBE). But the pace of change remains slow and resistance to change remains strong as ever. Expanding these practices across more colleges and universities is vital to prepare students for the demands of the workplace. As far as I am concerned, there are no alternatives or middle ground to explore. If this entails disruption, then so be it.

In addition to teaching and assessment reforms, peer learning and the co-creation of knowledge are gaining importance in the digital age. Peer learning fosters collaboration, critical thinking, and diverse perspectives, all essential for success in modern workplaces. Similarly, the co-creation of knowledge where students and educators collaborate on research or problem-solving encourages deeper engagement and innovation. Platforms like GitHub, where coders collaborate on open-source projects, exemplify how peer learning drives innovation. Educational institutions in India can adopt similar approaches by promoting group assignments, hackathons, and interdisciplinary projects to enhance teamwork and creativity.

While educational institutions play a crucial role in equipping students with the right skills, they cannot do it alone. Industry partnerships are essential to bridging the gap between academia and the workplace. Industries can contribute by co-designing curricula, offering internships, and providing mentorship opportunities. A notable example is Maruti Suzuki’s collaboration with Industrial Training Institutes (ITIs), which offers students hands-on experience on assembly lines. This partnership ensures graduates are job-ready and able to meet industry demands immediately. Despite such success stories, these collaborations remain sporadic. They are an exception, rather than the norm.

One of the major hurdles in fostering industry-academia collaboration is the funding disparity between public and private institutions. Government-run colleges and universities, such as the IITs and NITs, attract significant corporate donations, but they cater to only a fraction of India’s student population. According to the All-India Survey on Higher Education (AISHE), over 70% of India’s graduates come from privately run institutions, which often operate with limited resources and minimal industry funding. This funding gap undermines their ability to offer state-of-the-art facilities or industry-aligned programs. For industries, this is a missed opportunity. Investing in private institutions can yield significant returns in the form of a skilled, job-ready workforce, reducing the need for additional training.

Industries must recognise that investing in education is akin to investing in other production factors like machinery or technology. A well-trained workforce drives productivity, innovation, and economic growth. Yet, industry contributions to education in India are overwhelmingly directed towards public institutions, leaving private colleges—which produce the bulk of graduates—struggling to keep up. This imbalance must be addressed. Tax incentives for industries that fund private institutions, the creation of public-private skill development hubs, and collaborative curriculum design are some ways to bridge this divide.

Moving forward, a shared vision between academia and industry is crucial. Policymakers should encourage collaborative initiatives, while industries must step up as active stakeholders in shaping the future workforce. By co-designing curricula, sponsoring faculty upskilling programs, and providing apprenticeships, industries can ensure that graduates meet their specific needs. Educational institutions, in turn, must embrace innovative teaching methods, competency-based assessments, and collaborative learning models to prepare students for real-world challenges.

The journey toward a more effective and inclusive education system requires collaboration and commitment. With the right policies and partnerships, India can transform its employability landscape and set a global benchmark for educational excellence. The time to act is now, and the potential rewards are immense—for students, educational institutions, industries, and the nation as a whole. The price of inaction is incalculable and shall be paid by generations to come.

The author is the Group CEO of Techno India Group, a visionary and an educator. Beyond his corporate role, he is also a mentor who guides students towards resilience and self-discovery