– Nikhil Barshikar, Founder & CEO, Imarticus Learning

For decades, a university degree in India was considered a passport to secure employment. Today, that assumption no longer holds. According to the Economic Survey 2024-25, only 8.25 percent of graduates are employed in roles aligned with their qualifications. Over half of graduates and 44 percent of postgraduates work in low-skill jobs unrelated to their education.

The challenge is amplified by rising unemployment. The Centre for Monitoring Indian Economy reports that 44.5 percent of Indians aged 20–24 remain jobless. Graduate employability has also declined, falling from 44.3 percent in 2023 to 42.6 percent in 2024 (Mercer-Mettl Graduate Skill Index 2025). Despite billions invested in higher education, India continues to produce degrees rather than employable professionals.

The finance opportunity gap
The disconnect is starkest in finance. The BFSI sector employs 9 million people, contributes nearly 6 percent to GDP and is expanding rapidly. Fintech alone is expected to generate 300,000 new jobs this year, driven by record UPI transactions and digital adoption.

Yet most graduates remain unprepared. Employers seek expertise in fraud detection, credit risk, compliance, analytics, AI-driven trading, and digital product management. Universities, however, continue to emphasise theory while neglecting financial modelling, valuation, regulatory analysis, or the application of technology.

This paradox is clear: finance and fintech are among India’s fastest-growing job creators, yet millions of educated graduates cannot seize these opportunities.

Finance in a tech-first world
Finance is now inseparable from technology. The most in-demand skills include:

AI and machine learning for fraud detection and algorithmic trading
Data analytics for portfolio management and risk modelling
Cybersecurity to safeguard trillions in transactions
Blockchain for digital assets and smart contracts
Cloud computing for scalable financial services

The skills gap is alarming. By 2026, India is projected to face a shortage of more than one million professionals in AI, machine learning and data analytics. In AI alone, only one qualified engineer exists for every ten open roles.

This scarcity drives salaries upwards: senior AI talent in finance can earn up to ₹60 lakh annually, while entry-level AI and ML roles start at ₹7.6 LPA—well above traditional finance pay scales. Employers are rewarding skills, not degrees.

Where education falls short
India’s finance education system struggles on four fronts:

Theory over practice: 1.5 million commerce and finance graduates are produced annually, yet only 27 percent of Indians possess basic financial literacy.
Outdated curricula: Courses prioritise broad management theories rather than specialist areas such as risk analytics or modelling.
Weak technical grounding: Graduates lack data and programming skills, pushing employers to hire engineers instead.
Limited industry exposure: Few institutions integrate internships, live projects, or mentoring into their programmes.

The outcome is predictable: graduates who excel in exams but falter in solving real-world problems.

The employability premium
Employers increasingly prioritise demonstrable skills. According to industry surveys, 72 percent of BFSI recruiters prefer candidates with practical expertise over academic credentials. Global certifications such as CFA, ACCA, US CMA and CPA are highly valued for combining rigour with applied competence.

Salary differentials tell the story:

Financial analysts with Excel, SQL and valuation skills: ₹6–10 LPA
Risk managers with Python/R and Basel expertise: ₹12–25 LPA
Investment bankers with M&A modelling skills: ₹20–50 LPA

The message is clear—applied skills, not degree prestige, drive employability.

The way forward
To bridge the education-employment divide, India must prioritise application over theory. This requires:

Embedding internships and live projects into curricula
Building industry-led mentorship ecosystems
Making data, AI and fintech applications central to finance education
Promoting lifelong learning through certifications and executive programmes

With the finance sector projected to grow at 8.5 percent CAGR through FY-27, millions of jobs will be created. Whether India’s graduates are equipped to fill them depends on how swiftly education adapts.

Conclusion
Degrees still matter—they provide knowledge and credibility. But with fewer than one in ten graduates employed in roles matching their education, degrees alone are insufficient.

The employability premium lies in combining academic foundations with applied skills, theoretical learning with practical exposure, and adaptability with continuous upskilling. For India’s youth, this is not just an advantage—it is the only way to thrive in an AI-first economy.

Also Read: Mastering Leadership in Finance: Strategies for Senior Executives