India Makes Notable Progress in Higher Education Access, Report Reveals
India has achieved substantial progress in expanding access to higher education for the population aged 15 to 29 years, according to the 'State of Working India 2026' report released by Azim Premji University. The findings highlight a movement out of agriculture into industry and services, alongside reduced gender and caste-based disparities in educational opportunities.
Youth Education Levels Rise, but Challenges Persist
The report, which draws on official databases spanning four decades, indicates that youth education levels have increased significantly over this period, with particularly notable improvements among women. However, it notes a decline in the share of young men in education, from 38% in 2017 to 34% in late 2024, with many citing the need to support household incomes as a primary reason for withdrawal.
Indu Prasad, President of Azim Premji Universities, commented, "More young people today are educated, informed, and ambitious than ever before. These are real achievements of which we can be proud."
Faculty Growth Fails to Keep Pace with Student Numbers
A critical finding of the report is that faculty growth has not matched the rising student numbers in higher education institutions. Against AICTE norms of 15-20 students per teacher, private colleges average 28 students per teacher, while public colleges average 47. The report emphasizes that hiring and filling vacancies are crucial to prevent compromised learning outcomes due to resource constraints.
Rosa Abraham, lead author of the report and Associate Professor of Economics at Azim Premji University, stated, "The report traces the journey of a young worker from education to job search and employment, and how this transition has evolved over the last forty years. We hope it will lay out foundational work for better understanding challenges and enabling coordinated policymaking."
Democratization of Education and Financial Barriers
Higher education has become increasingly democratized, with the share of students from the poorest households in tertiary education rising from 8% in 2007 to 15% in 2017. Despite this progress, financial barriers remain significant. Students from richer households are far more likely to pursue degrees in engineering and medicine, as the costs often exceed the annual per capita expenditure of poorer households.
Employment Trends and Economic Implications
The report reveals high graduate unemployment rates among youth, with nearly 40% among those aged 15 to 25 and 20% among those aged 25 to 29. Only a small share secure stable salaried jobs within a year of graduation. Graduates earn roughly twice as much as non-graduates at entry, and this earnings gap widens over their careers.
Entry-level salaries for young male graduates have slowed in growth since 2011, while gender gaps in graduate earnings have narrowed. Young workers are leaving agriculture faster than older cohorts and moving into manufacturing and services. Young women are increasingly employed in sectors such as IT, automobile manufacturing, and business services.
Institutional Quality Concerns in Skill Development
While the number of Industrial Training Institutes (ITIs) has grown by nearly 300% since the 2010s, largely due to private providers, the institutional quality, especially among private ITIs, has declined. This raises concerns about the effectiveness of skill development initiatives in meeting workforce demands.
Demographic Shifts and Future Outlook
One of the report's key projections is that India's working-age population share will begin to decline after 2030. This underscores the urgency of addressing educational and employment challenges to fully leverage the demographic dividend before it diminishes.
The 'State of Working India 2026' report provides a comprehensive analysis of youth participation in education and employment, highlighting both achievements and areas needing attention to ensure sustainable economic growth and social equity.
