India’s engineering graduates are back in demand: Employability reaches five-year high in 2025

Engineering in India had for years carried a paradox. It was the country’s most popular professional degree, yet questions around employability persisted. Were graduates job-ready? Were colleges keeping pace with industry? The tide may finally be turning, according to the latest India Skills Report 2026 brought out by Wheebox.Employability amongst B.E/B.Tech graduates touched 71.5% in 2025 – the highest level in five years, the report says. The rise is not sudden or accidental. It comes with a steady rebuilding process initiated after the pandemic disrupted hiring cycles and exposed skill gaps.

The numbers behind the turnaround

The upward movement becomes clearer when viewed year by year. The India Skills Report’s five-year data lays out how steadily engineering employability has strengthened since the pandemic setback:

While the level of employability dipped to 46.82% in 2021 due to the general uncertainty that led to a hold on new recruitments, the recovery that followed was more than just a rise. There has been a consistent rise in the levels since 2022, culminating in a tremendous increase in the past two years.A near 25 percentage point increase since 2021 suggests something deeper than cyclical hiring. It signals recalibration — both in classrooms and boardrooms.

A shift in how engineers are trained and hired

Engineering education in India has often been criticised for being overly theoretical. But the recent gains indicate change. Colleges are placing greater emphasis on internships, project-based learning, coding practice, industry certifications, and exposure to real-world problem-solving.At the same time, employers have altered their filters. The focus has moved away from brand-heavy shortlisting toward demonstrable skills. Recruiters are asking practical questions: Can the candidate write clean code? Can they analyse a dataset? Can they design a workable system under constraints?Digital transformation has also widened the demand base. Technology is no more just about providing IT services. Now banks, hospitals, manufacturing units, and even start-ups are all tech companies. There’s no longer just engineers providing support; there are engineers creating the backbone of businesses themselves.

The branches that are leading

The India Skills Report’s domain-wise data underlines this shift.

Computer Science graduates top the list — unsurprising in an economy increasingly shaped by AI, cybersecurity, cloud infrastructure, and data science. IT follows closely. Instrumentation and Electronics engineers are benefiting from automation, semiconductor expansion, and smart manufacturing.Mechanical engineering, while lower at 63%, continues to anchor India’s industrial and automotive sectors. Core engineering, it appears, is evolving rather than shrinking.

Beyond the conventional job map

The career landscape after B.Tech looks different today than it did a decade ago.Software development and data roles remain dominant, but newer pathways are emerging — AI engineering, robotics, EV systems, semiconductor fabrication, product design, and deep-tech startups. Many graduates are moving into product management, analytics, or technology consulting. Others are building ventures of their own.Higher studies continue to attract a section of students, particularly those eyeing research, global mobility, or leadership roles.

More than just a statistic

Employability figures often reduce complex realities to percentages. However, beyond the statistic of 71.5%, there are other implications. There is a general change in what is expected of students. Students are making more intentional investments in skills. There is institutional responsiveness to competition. There is a shift in how employersEngineering, long seen as overcrowded and uneven in outcomes, appears to be regaining its footing. If the current trajectory holds, the conversation may gradually shift — from questioning whether engineers are employable to asking how they are shaping India’s next phase of growth.