Present Status of Tech Education in India Introduction
- India is currently navigating an intriguing paradox: while its IT industry is booming and the country has emerged as the third-largest startup ecosystem globally, the quality of its tech education is declining.
- This growing mismatch between the rapid advancement of technology and the state of tech education in India could hinder the country’s digital economy in the long run.
Current Status of Tech Education in India
- Declining Quality of Engineering Institutions: India boasts more than 3,500 engineering colleges, but a significant portion of them—over 50%—face dwindling enrollments. This crisis is largely due to factors like poor faculty, outdated curricula, and inadequate research infrastructure. As per the 2023 AICTE report, two-thirds of MTech seats remain vacant, reflecting a deep structural issue within the system. Furthermore, only about 10% of educational institutions offering tech programs have received an ‘A+’ rating from NAAC (National Board of Accreditation), indicating a widespread deficiency in quality.
- Skill Gap and Outdated Curriculum: A critical issue plaguing India’s workforce is the lack of industry-ready skills among graduates. Reports, including one by Mercer-Mettl, reveal that only 46% of graduates are employable in AI/ML roles, and similar gaps exist in blockchain and cybersecurity. Universities continue to focus on rote learning, which fails to cultivate essential problem-solving skills, coding proficiency, and innovation. With emerging technologies evolving at a rapid pace, this outdated approach to education limits students’ ability to compete in the global tech industry.
- Market Growth and Valuation: The EdTech sector in India has witnessed remarkable growth, valued at $7.5 billion in 2024 and projected to reach $29 billion by 2030, growing at a compound annual growth rate (CAGR) of 25.8%. The sector’s rapid expansion is driven by rising demand for skill development, K-12 education, test preparation, and online certification. Major EdTech players, such as PhysicsWallah, LEAD, Eruditus, upGrad, and Vedantu, have become unicorns in this space, attracting over 100 million paid users. While this growth highlights the potential of online learning platforms, it is important to note that these innovations often address supplementary educational needs rather than addressing the core issues plaguing India’s traditional tech education.
- Limited AI Research and Patents: India’s position in AI research remains far behind global leaders. The Stanford AI Index 2024 revealed that China produced four times more AI research papers than India. Additionally, India holds less than 1% of the world’s AI patents, while China dominates with 60%. This research gap hinders India’s ability to become a key player in the global AI market and limits innovation in critical sectors like robotics, automation, and machine learning.
Importance of Tech Education in India
- Boost to Innovation and Startups: India ranks third globally in terms of its startup ecosystem, yet the survival rate of tech startups is low, with only 30% surviving beyond their first three years. This is primarily due to a lack of skilled talent. Strengthening tech education will foster a more capable workforce and encourage innovation, providing startups with the necessary technical expertise to grow and succeed in the competitive market.
- Enhanced Employability and Global Competitiveness: As industries worldwide adopt AI and automation, the demand for tech professionals is at an all-time high. However, India ranks only 112th out of 130 countries in the 2024 WEF Report on workforce readiness for Industry 4.0. Tech education plays a crucial role in improving employability, ensuring that India remains competitive in the digital age and preventing large-scale unemployment.
- Driving Economic Growth: The IT sector is a key driver of India’s economy, contributing 8% to the nation’s GDP and employing over 5 million people (NASSCOM, 2024). A well-trained tech workforce could add $1 trillion to the country’s GDP by 2030, according to McKinsey (2023). In a global economy increasingly driven by technology, India must invest in tech education to maintain its competitive edge and unlock the potential of its vast human capital.
- Strengthening National Security: India faces increasing cyber threats, yet the country produces only 10,000 cybersecurity professionals annually, which is far below the projected demand of 1 million by CERT-IN (2024). Given the importance of cybersecurity for national security, it is essential for India to invest in strengthening tech education to meet the growing need for professionals in this field.
- Increased Demand for Tech Professionals: The demand for tech professionals has expanded beyond traditional IT sectors to include industries such as BFSI (Banking, Financial Services, and Insurance), healthcare, retail, and energy. These sectors are now recognizing the value of tech expertise and are hiring entry-level professionals, further amplifying the need for skilled workers in tech.
Problems in Tech Education in India
- Faculty Shortage and Quality of Teaching: India faces a severe shortage of qualified faculty, with 35% of engineering faculty positions vacant, according to AICTE’s 2024 report. Moreover, many professors lack industry experience, which undermines the quality of teaching and contributes to a system that fails to prepare students for the real-world challenges they will face in the tech industry.
- Brain Drain and Migration of Tech Talent: Over 50,000 Indian engineers migrate annually to countries like the US, Canada, and Europe in search of better career opportunities. Factors such as low salaries, limited research opportunities, and bureaucratic hurdles in India contribute to this brain drain, resulting in the loss of top talent that could have contributed to the country’s growth.
- Limited Focus on Emerging Technologies: Despite the growing demand for emerging technologies like AI, blockchain, and quantum computing, only 15% of Indian universities offer courses in these areas. As a result, India is not adequately preparing its students for the rapidly evolving tech landscape, which limits the country’s ability to compete in the global tech race.
- Digital Divide in Tech Education: Rural students face significant barriers in accessing quality tech education. Poor internet connectivity and limited access to coding resources and IT skills further exacerbate the digital divide. According to the ASER Report 2023, only 18% of government schools offer basic computer education, creating a significant gap between urban and rural students.
- Doctoral Deficit: India produces the second-largest number of engineering graduates globally, but it still lags behind countries like the US and China in terms of doctoral research. India has only one-third as many PhD holders as the US and one-fifth compared to China, a gap that hampers the country’s ability to drive cutting-edge research and innovation, particularly in emerging fields like AI and quantum computing.
- Industry-Academia Gap: The gap between academia and industry remains a significant challenge. Only 7% of colleges in India have strong industry partnerships, and opportunities for internships in tech sectors are limited. This lack of industry tie-ups prevents students from gaining practical, hands-on experience, which is crucial for securing employment in today’s tech-driven economy.
Steps Taken to Reform Tech Education in India
- Policy Initiatives and Implementation
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- National Education Policy (NEP) 2020: The NEP introduced coding from Class 6 and promotes multiple entry-exit options in higher education, with a focus on experiential learning and interdisciplinary studies.
- Skill India Digital Hub (SIDH): SIDH is a digital platform aimed at transforming the skills, education, employment, and entrepreneurship landscape in India.
- AI-Powered Educational Platforms: AI-driven platforms like DIKSHA, NISHTHA Online, and SWAYAM are working in collaboration with government and educational institutions to improve access to quality education and skill development.
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- Infrastructure Development
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- Smart India Hackathon: This initiative has engaged over 2 million students since 2017, helping solve over 500 real-world problems and generating 200+ startup ideas.
- Technology Innovation Hubs: Under the NM-ICPS initiative, 25 Technology Innovation Hubs have been established in reputed institutions across the country to focus on advanced technology research.
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- Industry-Academia Partnerships
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- Future Skills PRIME: A collaboration between NASSCOM and MeitY, Future Skills PRIME aims to build a robust digital talent pool in India.
- Infosys Springboard: This platform offers free online courses in programming, AI, and data science to both students and professionals, improving access to high-demand skills.
Way Forward for Tech Education Reform in India
- Industry-Aligned Curriculum and Skilling Initiatives:
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- Mandate AI, data science, and cloud computing as core subjects in engineering courses.
- Collaborate with global tech giants like Google, Microsoft, and TCS to update course content and provide certification.
- Scale up government programs like Skill India and NASSCOM’s FutureSkills Prime.
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- Strengthening Research and Innovation:
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- Increase R&D spending from 0.7% to 2% of GDP to match global standards.
- Encourage tech startups in universities with dedicated incubators and accelerators.
- Provide incentives for patent filings and promote a culture of innovation through subsidies and mentorship.
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- Digital Infrastructure and Accessibility:
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- Expand high-speed internet connectivity in rural areas to bridge the digital divide.
- Offer free or subsidized coding and tech courses to underserved students.
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- Faculty Development and International Collaboration:
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- Upgrade faculty training programs with industry exposure and partnerships with leading global universities.
- Hire foreign professors to infuse new ideas and foster international collaboration in research.
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- Bridging the Gender Gap in STEM:
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- Establish scholarships and mentorship programs specifically for women in tech fields.
- Enforce diversity policies in educational institutions to ensure gender inclusivity.
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- Retaining Indian Talent:
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- Offer competitive salaries, tax incentives, and research grants to retain top tech talent in India.
- Create more AI and deep-tech job opportunities to reduce brain drain.