India’s job market is shifting towards Skills Over Degrees, with major firms and government initiatives emphasizing apprenticeships and practical training.
India’s Job Market Now Values Skills Over Degrees
TheInterviewTimes.com | New Delhi | October 31, 2025 — In a defining transformation of India’s employment ecosystem, employers are steadily prioritizing Skills Over Degrees, marking a major cultural and economic shift in how talent is recruited, trained, and retained. This change, long predicted by industry experts, is now being accelerated by technological disruption, new education models, and government-led apprenticeship programs.
The Shift from Degrees to Skills
According to the Economic Survey 2024–25, only 8.25% of Indian graduates are employed in positions directly related to their academic qualifications. A staggering number of graduates—over 50%—work in jobs far below their educational level. This mismatch has triggered an urgent need for a Skills Over Degrees approach, where capability and experience outweigh classroom credentials.
Global and Indian corporations alike are leading this revolution. Companies such as Google, Apple, and IBM have dropped degree requirements for numerous roles. In India, top firms like Tata Consultancy Services, Infosys, and Accenture have also adopted a skills-first hiring policy, focusing on candidates’ demonstrable abilities rather than their formal qualifications.
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Why “Skills Over Degrees” Is Becoming the New Norm
Industry experts say hiring decisions today are guided by “demonstrable readiness.” Devashish Sharma, CEO of Taggd, explains, “The next wave of hiring in India will be defined not by degrees, but by demonstrable readiness—skills validated through projects, internships, and data-driven assessments.”
The India Skills Report 2025 further supports this trend, showing a rise in graduate employability to 55%, up from 51.2% last year. However, despite this modest improvement, most employers still find candidates lacking in applied knowledge. This has led to a growing realization that the traditional degree-based model is outdated for a digital and innovation-driven economy.
Government Push: Apprenticeships for Skill Development
Recognizing the demand for skilled workers, the government has ramped up its apprenticeship initiatives under the National Apprenticeship Promotion Scheme (NAPS-2). The target for FY 2025–26 is to engage 13 lakh apprentices, with nearly 4 lakh already enrolled by mid-2025.
In a move that strengthens the “Skills Over Degrees” agenda, the Central Apprenticeship Council recently approved a 36% stipend hike, increasing monthly payments to between ₹6,800 and ₹12,300. Since FY 2018–19, almost 42 lakh apprentices have been trained across industries — from manufacturing to IT and renewable energy.
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Corporate India Embraces the Skills Revolution
Private sector giants are also embracing the Skills Over Degrees approach through tailored apprenticeship and training programs. Genpact’s 12-month apprenticeship focuses on developing communication, leadership, and data analytics skills — preparing participants for high-demand roles. Public enterprises like POWERGRID and Indian Oil Corporation are launching similar initiatives, creating thousands of job-ready professionals every year.
Sharma adds, “Employers are partnering with universities to co-design skill development programs and real-world learning modules.” Collaborations like the INAE-Infosys Foundation Centre at IIT Delhi and IIT Hyderabad’s partnership with Renesas Semiconductor exemplify this integration of academia and industry.
A Global Trend with Local Relevance
Globally, the Skills Over Degrees movement is transforming recruitment practices. Nearly half of employers in developed markets no longer consider a degree mandatory. Instead, they assess a candidate’s ability to contribute from day one, using metrics like digital portfolios, certifications, and project-based evaluations.
India’s young workforce — over 600 million people under 25 — stands to benefit immensely from this global mindset shift. As companies focus on verified skills, India could bridge its long-standing employability gap and unlock the full potential of its demographic dividend.
The Road Ahead
As India’s economy transitions toward automation, AI, and green technologies, the emphasis on Skills Over Degrees will only intensify. Universities, industries, and policymakers are aligning efforts to ensure learning outcomes match real-world demands.
This evolution signals hope for millions of Indian graduates who face underemployment despite holding degrees. The growing preference for skills over academic labels could reshape not just hiring norms, but the very definition of education, success, and opportunity in 21st-century India.