The India Skills Report 2026 , the 13th edition, reveals Computer Science and IT engineers are India’s most employable graduates. For the first time in five years, women’s employability reached 54%, surpassing men’s 51.5%. The report is a collaboration between ETS, Confederation of Indian Industries (CII), All India Council for Technical Education (AICTE), Association of Indian Universities (AIU), and Taggd. It gathered insights from over 1 lakh candidates and responses from 1,000 organizations across seven industries. The report also notes a slight drop in job prospects for MBA graduates.
Employability Overview
Engineering graduates maintain high employability at 70.15% in 2026, a slight decrease from 71.5% in 2025. Computer Science engineers show 80% employability, while IT engineers stand at 78%. AI, data analytics, and automation roles drive these figures. MBA graduate employability dropped to 72.76% from 78% in 2025. This indicates an industry shift toward applied managerial expertise.
Commerce graduates saw employability rise sharply to 62.81% from 55% in 2025. BFSI and Fintech hiring surges fueled this growth. Science graduates reached 61% employability, up from 58% in 2025. Arts graduates gained steadily, reaching 55.55% from 54% in 2025. Employability for Industrial Training Institutes (ITI) candidates rose to 45.95% from 41%. Polytechnic diploma holders improved to 32.92%. Despite these gains, vocational and technical education employability remains low. The report notes 92.8% of students seek practical exposure. This preference is especially high in Karnataka, Madhya Pradesh, and Tamil Nadu.
Gender Gap Narrows in Employability
Women’s employability reached 54% in 2026, exceeding men’s 51.5%. This marks the first time women have surpassed men in employability in five years. Tier-2 and Tier-3 regions show stronger female participation. This is notable in Uttar Pradesh, Kerala, and Telangana. These regions offer flexible employment models in BFSI, education, and healthcare sectors. Women now show dominant interest in legal (96.4%) and healthcare (85.95%) fields. Men continue to prefer graphic design (83.11%) and engineering design (64.67%).
| Year | Men (%) | Women (%) |
|---|---|---|
| 2020 | 34.26 | 47.00 |
| 2021 | 34.26 | 41.25 |
| 2022 | 47.28 | 53.28 |
| 2023 | 47.20 | 52.80 |
| 2024 | 51.80 | 50.86 |
| 2025 | 53.46 | 47.53 |
| 2026 | 51.50 | 54.00 |
Hiring Forecasts and AI’s Impact
Organizations in India project 40% of total planned hires to be new roles in Financial Year 2026-27. This reflects business confidence and expansion, up from 29% last year. The IT sector dominates fresher hiring at 35%. This is higher than the 14% cross-industry average last year. The manufacturing sector focuses on skilled, experienced talent, with fresher hires at 5%.
Pharmaceuticals and Healthcare lead hiring for candidates with 1-5 years of experience at 65%. BFSI follows with 32%, and FMCG shows strong demand at 40%. The global AI talent pool will reach 1.25 million by 2027. This influences recruitment trends. 70% of IT companies and 50% of BFSI firms now use AI in their recruitment practices. This marks a notable increase from last year’s pilot stages. Emerging green job roles include renewable energy technicians, solar and wind engineers, sustainability analysts, and climate data specialists. AI/ML engineers and data scientists are in highest demand, with over 600% growth in job postings. Employers use micro-credentials, stackable certifications, and experiential learning models. AI-assisted recruitment and training platforms personalize upskilling pathways.
Key Challenges Identified
The India Skills Report 2026 identifies three main challenges. Curriculum reform must keep pace with emerging technologies. Energy-efficient AI infrastructure and climate-aligned job creation require attention for sustainable growth. Stronger incentives are needed for industry investment in vocational and rural upskilling. The demand for AI, data, cybersecurity, and cloud expertise continues to exceed supply. This highlights a need for wider upskilling initiatives.