The Indian education system, particularly engineering and management institutions, is facing a daunting challenge. The decline of campus placements has become a stark reality, leaving students, institutions, and the industry worried. The statistics are alarming, and it’s essential to analyze the problems, identify the causes, and propose solutions.
According to a recent report, the average salary package for engineering students in India has dropped by 30-60% compared to last year. The highest package offered at the National Institute of Technology (NIT) Warangal, for instance, has declined from Rs 88 lakh per annum to Rs 64.5 lakh per annum.
Similarly, Osmania University reported a decline in its highest package from Rs 25 lakh per annum to Rs 17.6 lakh per annum(TOI,23 Jan 2025).
As the placement scenario continues to deteriorate, a look at the previous year’s trends reveals an equally alarming picture. According to a report by Xpheno, a staffing firm, the IT/ITeS sector hired only 60,000 fresh graduates in FY24, which is the lowest in 20 years.
Another report highlights that the number of students who could not secure any placement has surged alarmingly in recent years, with almost 8,000 students not getting any campus placement in 2024 .
The situation is not limited to engineering institutions. MBA graduates are also facing a challenging job market. The MBA Placement 2024 season witnessed a significant downturn in salary trends, with several top business schools in India experiencing a decline in average salaries.
According to a survey, the average salary for MBA graduates in India in the year 2024 has dropped by 15-20% compared to 2023. The highest package offered to MBA graduates has also declined, with some top business schools reporting a drop of up to 30%.
Several factors contribute to this decline:
- Global Economic Slowdown: The global economic slowdown has resulted in companies cutting back on hiring.
- Jobless Growth: India’s economic growth is not translating into employment opportunities.
- IT Sector Correction: The IT sector, a significant recruiter of engineering and management talent, has seen a correction, leading to a dip in hiring.
- Automation and AI: The increasing use of automation and AI is reducing the demand for certain skills.
- Lack of International Firms: Fewer international firms visiting campuses for recruitment
- Sectoral Inefficiencies: Primary sector employing more than 50% of India’s workforce while contributing less than 20% to GDP .
- Labor Market Rigidity: Employers pushed towards more capital-intensive modes of production than labor-intensive ones.
- Poor Employability: Only 50.3% of India’s youth considered employable
- Poor Participation in Global Value Chains: India’s GVC participation declining to 40.3% by 2022 .
- Mismatch between Curriculum and Industry Needs: Many institutions’ curricula may not be aligned with the rapidly changing needs of the industry.
To address this challenge, we need a multi-faceted approach:
- Internship and Project-Based Learning: Institutions can focus on providing internship and project-based learning opportunities to students, enabling them to gain practical experience and build a portfolio of work.
- Industry-Specific Training Programs: Colleges and universities can collaborate with industry partners to develop training programs tailored to specific industry needs, enhancing employability.
- Entrepreneurship Support: Institutions can establish entrepreneurship cells, providing resources, mentorship, and funding support to encourage students to start their own ventures.
- Career Counseling and Guidance: Institutions can strengthen their career counseling and guidance services, helping students make informed career choices and develop effective job search strategies.
- Alumni Network Engagement: Institutions can utilise their alumni networks to provide students with mentorship, job opportunities, and industry insights.
- Government-Academia-Industry Partnerships: The government, academia, and industry can collaborate to establish partnerships that promote innovation, entrepreneurship, and job creation.
- Upskilling and Reskilling of Faculty: Institutions can invest in upskilling and reskilling their faculty, ensuring they are equipped to teach industry-relevant skills and technologies.
- Development of Emerging Technology Skills: Institutions can focus on developing emerging technology skills, such as AI, data science, and cybersecurity, to prepare students for the jobs of the future.
The decline of campus placements is a pressing concern that requires immediate attention. By understanding the causes and implementing the proposed solutions, we can revitalize the campus placement ecosystem and provide better employment opportunities for India’s engineering and management talent.
