The India Skills Report 2026 highlights major shifts in India’s graduate employability landscape. While technology remains the dominant force shaping hiring trends, the new report reveals surprising winners and unexpected slowdowns across degree streams.
Tech-driven degrees continue to lead, but the middle of the ranking tells a new story. MBA employability has slipped, commerce streams are rising steadily, and vocational pathways—once overlooked—are strengthening due to India’s evolving job ecosystem.
Below is a complete analysis of how each degree performed and what it means for the future workforce.
Employability by Degree in 2026
The report highlights the following employability rates across major streams:
| Degree / Stream | Employability Rate (2026) |
|---|---|
| Computer Science (CS) | 80% |
| Information Technology (IT) | 78% |
| B.E. / B.Tech (Engineering) | 70.15% |
| MBA | 72.76% |
| Commerce (B.Com / similar) | 62.81% |
| Science (Non-IT) | ~61% |
| Arts (Non-technical) | ~55.55% |
| ITI (Vocational) | 45.95% |
| Polytechnic (Diploma) | 32.92% |
The top of the table shows a familiar pattern—Computer science and IT graduates remain the most employable in India. But the next rows reveal a shifting reality, with commerce and vocational education slowly rising in relevance.
Why Tech Degrees Continue to Dominate
Three major trends explain the dominance of CS and IT graduates:
1. Demand driven by AI and data adoption The rapid integration of artificial intelligence, data analytics, cloud computing, and Cybersecurity across industries has made CS and IT graduates indispensable.
2. Employers want hybrid talent Companies are looking for graduates who can work at the intersection of engineering, data, and analytics—not just traditional coders.
3. IT hires the most freshers The report states that 35% of all freshers hired in 2026 were placed in IT roles, making it the largest recruiter for entry-level talent.
For students, this means tech degrees—especially with specializations in AI, data science, and cloud technologies—remain high-value paths.
Why MBA Employability Is Dropping
One of the most surprising findings is the dip in MBA employability from earlier levels of 78% to 72.76% in 2026.
1. Employers prefer cross-domain managers Companies want MBAs who understand technology, analytics, and digitized operations. The traditional, theory-based generalist MBA holds less appeal.
2. Applied, digital skills outweigh academic knowledge With AI-driven business models and remote operations reshaping industries, managers need agility, data literacy, and domain depth.
3. Rising competition from commerce and tech streams Commerce graduates are becoming more employable, while engineering + management combinations outperform MBAs without domain expertise.
The takeaway is clear: an MBA is still valuable, but specialization—particularly in analytics, digital strategy, or operations—is now essential.
The Commerce Comeback
Commerce has made one of the strongest gains, with employability rising to 62.81%.
Reasons for this boost include:
- Strong hiring in banking, finance, and insurance (BFSI)
- Growing demand for domain expertise in analytics, operations, and financial roles
- Preference for cost-effective, skilled talent over generalist managers
Commerce is no longer a “backup” discipline—it is now a competitive and relevant career path when combined with digital or analytical skills.
Other non-tech streams are also improving. Science graduates (non-IT) show 61% employability, while arts graduates (55.55%) find increasing relevance in hybrid, creative-tech, and interdisciplinary roles.
Why Vocational Degrees Are Rising
Another notable trend is the steady growth of vocational pathways:
- ITI employability: 45.95%
- Polytechnic employability: 32.92%
These improvements reflect a shift in employer priorities, especially in industries such as manufacturing, EVs, renewable energy, logistics, and automation-focused operations.
Hands-on practical skills are now valued more than ever, helping vocational graduates find meaningful roles across engineering support, mechanical operations, electrical maintenance, and automotive sectors.
What This Means for Students, Universities, and Employers
For Students:
- CS and IT remain high-opportunity programs, especially with AI or data expertise.
- Commerce and vocational pathways are becoming strong, practical alternatives.
- MBA candidates must choose specialization—general MBAs no longer guarantee top employability.
For Colleges & Universities:
- Introduce cross-disciplinary courses combining business, analytics, and tech.
- Strengthen industry partnerships to offer real-world projects and internships.
- Adopt skill-based evaluation methods to improve job preparedness.
For Employers:
- Continue strong tech hiring while leveraging commerce and vocational talent pools.
- Create fresher roles that reward domain knowledge and analytical thinking.
- Collaborate with academia to align curriculum with industry needs.
The Bottom Line
The India Skills Report 2026 makes one message clear—future employability depends on skills + specialization + practical experience, not just earning a degree.
- CS (80%) and IT (78%) dominate due to AI-driven transformation.
- MBA employability declines without digital or domain expertise.
- Commerce and vocational pathways are becoming strong, career-worthy choices.
If you’re planning your education or career strategy, what you study still matters—but how you build your skills matters even more. Choose degrees that offer digital literacy, hands-on exposure, and future-ready specialization.
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