National Engineers Day 2024: AI Race, Loans, and Employability India produces 16% of the world's AI talent pool, and by FY29, there will be a 10% annual increase in college fees
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Indian information and technology prowess not only is an asset to their homeland but also dominate the global IT market. This dominance is not expected to slow down. In fact, the IT and business services market will expected to reach USD 19.93 billion by 2025. Notably, the Indian IT spending is expected to grow by 11.1 per cent in 2024, reaching USD 138.6 billion, up from USD 124.7 billion last year. However, modern technologies such as Artificial Intelligence (AI), the dominance of Machine Learning (ML), and the demand for cybersecurity professionals could challenge this global dominance if Indian universities don't keep pace with technological advancements.
The country celebrates National Engineers' Day annually on 15th September on the birth anniversary of the renowned civil engineer, Sir M. Visvesvaraya, whose contributions to infrastructure are unforgettable. The day also honors all engineers who work tirelessly to build and shape the nation.
Future Readiness in Tech Falls Short
The World Digital Competitiveness Ranking (WDCR-2023) by the International Institute for Management Development (IMD) ranked India 49th out of 64 economies. While India has shown significant growth in cybersecurity knowledge, it lags behind in modern technology, where it ranked 50th, and 51st in future readiness. In contrast, the USA ranked second globally in the future readiness category, highlighting Western dominance in emerging technologies like AI, ML, and robotics.
India's low ranking in future readiness is concerning, but it still produces sixteen per cent of the world's AI talent pool, making it the third-largest producer globally, according to Bain & Co and IAMAI. With ongoing government initiatives to position India as an AI capital, the country is expected to improve its ranking in the coming years, though IMD has not yet released its WDCR 2024 report.
Pawan Bhageria, President of Education at Tata Technologies, believes that Indian engineers are leading the charge in next-gen technologies like Gen AI, Software-Defined Vehicles (SDV), and Industry 4.0. "India's engineering talent is driving innovation and sustainability, reshaping industries, and turning challenges into opportunities," he said.
Further discussing job security due to AI, Dr. Sharad Kumar Saraf, Chairman of the Board of Governors at IIT Bombay and IIT Jammu, as well as Chairman of PIWOT 2025, explained that India is a global hub for IT and engineering talent, and many Indian engineers are well-positioned to meet the growing demand for AI skills. However, "There are still challenges to navigate. Employers must invest in comprehensive learning and upskilling programs, especially for blue-collar workers who are at a higher risk of job displacement due to automation," he said.
Loan Pressure and Job Pressure
The Indian government prioritized employment in its 2024 Union Budget, but its impact remains to be seen. For engineering graduates, the situation is still challenging. Many students take loans to fund their education, and repaying them is difficult for many Indian families—particularly when graduates struggle to secure jobs with decent salaries.
According to Propelld, which provides financing solutions for students, in FY22, the average annual tuition fee for engineering and technology programs was INR 119,000 for all colleges and INR 110,777 for mid-tier colleges. When hostel and other expenses are added, these costs rise to INR 214,200 for all colleges and INR 199,399 for mid-tier colleges.
By FY29, it is projected that there will be a ten per cent annual increase in fees, with total costs (including hostel and other expenses) expected to reach INR 417,415 for all colleges and INR 388,571 for mid-tier colleges, which is a heavy burden for an average family.
Getting a job, therefore, becomes crucial for graduates to repay their loans and sustain a living. However, the current employability rate for engineering graduates stands at 60 per cent, with only 45 per cent meeting industry standards, according to a report by TeamLease.
"This stark misalignment is further aggravated by the rising demand for specialized skills in areas like AI, electric vehicles (EVs), semiconductors, and the rapidly evolving electronics sector. The shift in industry needs, particularly in fields like cybersecurity, robotics, and data science, highlights the inadequacy of traditional academic models. Today's engineering graduates are often single-dimensional, lacking the broad set of skills required for modern workforce productivity," said Ramesh Alluri Reddy, CEO, TeamLease.
Ankush Sabharwal, Founder and CEO of CoRover, discussed current market demands and the changes needed in educational curricula. He emphasized the importance of incorporating emerging technologies into engineering education, stating, "We are home to breakthroughs like BharatGPT, Sovereign AI, CoroAssist, and eSevak, which highlight the need for engineers to understand domains such as NLP, AR, and VR in addition to core technologies."
"Interdisciplinary learning is crucial. Engineers must understand not just traditional subjects but also emerging fields like data science, AI, biotechnology, and sustainability, enabling them to tackle complex, cross-disciplinary problems," Dr. Saraf further added.
Sabharwal also stressed that curricula must include practical, real-world experience through internships, genuine projects, and collaborations with industry leaders to better prepare students. He added that hands-on experience with real-world AI applications, such as voice-based conversational payments and multilingual virtual assistants, helps students understand how engineering drives creativity in practical solutions.
