Finance Minister Nirmala Sitharaman emphasises the need for India’s universities to better integrate practical skills and market demands to boost employment and entrepreneurship, amid ongoing government initiatives and reforms.
India’s higher education system should do more than award degrees if it is to meet the country’s employment and entrepreneurship needs, Finance Minister Nirmala Sitharaman said, arguing that universities must close the gap between classroom learning and the skills demanded in the workplace. Speaking to The Indian Express on the sidelines of the BRICS finance ministers and central bank governors meeting in Jaipur, she said many courses leave students qualified on paper but underprepared for work, business formation or professional responsibility.
Sitharaman said countries with more developed higher education systems generally give students greater freedom to choose subjects and clearer routes into jobs. India, she said, should move further in that direction by linking degrees more closely to market demand and practical application. Her remarks come as policymakers continue to debate why so many graduates struggle to find work that matches their training, and why employers often say fresh recruits need additional upskilling.
Her comments also echo wider government efforts to connect education, skills and jobs. NDTV Profit reported that the Centre has outlined a Rs 1 lakh crore plan under the PM Viksit Bharat Rozgaar Yojana, aimed at helping create 3.5 crore jobs across the country, while more than 12 lakh appointment letters have already been issued under various recruitment drives. Business Standard has separately reported that the Union Budget 2026-27 places skilling, education and job creation at the centre of the growth strategy, including plans for a high-powered standing committee on “Education to Employment and Enterprise”.
Sitharaman also said the quality of government schools must improve, with investment focused not only on buildings but also on teaching standards, learning outcomes and teacher availability. She said rural postings need better housing and support if they are to remain viable, and that language and local staffing requirements matter as well. On jobs, she said the government can encourage private investment but cannot force firms to hire, adding that employment will ultimately depend on demand and opportunity. She also urged young people to become familiar with artificial intelligence, saying the technology is increasingly relevant across sectors. Moneycontrol has reported that the government is pushing AI training and curriculum changes in schools, colleges and industrial training institutes, while a TeamLease EdTech study cited by Business Standard found that most higher education institutions are still poorly aligned with industry needs.
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