India's top economists say skip college, but India still wants 50% in it

India’s top economists are advising students to consider skipping college, yet the country continues to set ambitious goals for higher education enrollment. This contradiction comes amid rising youth unemployment and growing skepticism about the value of traditional degrees. According to reports, several key government advisors, including members of the Prime Minister’s Economic Advisory Council, are suggesting that college may not be the best path forward for young people. However, the push to abandon formal education runs counter to India’s long-standing emphasis on academic achievement and the nation’s official target of achieving 50 percent college enrollment by 2035. The advice from these economists reflects broader concerns over the mismatch between educational outcomes and employment opportunities. With youth unemployment reaching 16 percent and technology sector layoffs mounting, the argument for alternative career paths is gaining traction. Sanjeev Sanyal, a senior advisor on the PM’s Economic Advisory Council, recently tweeted that college lectures may no longer be necessary, given the availability of free online resources such as YouTube. This perspective challenges the traditional model of higher education, which has historically been viewed as essential for upward mobility. Dr. V Anantha Nageswaran, India’s Chief Economic Adviser, echoed similar sentiments during a recent podcast interview. He suggested that vocational skills, such as welding, plumbing, and carpentry, could offer better financial returns than a traditional MBA. In another instance, Saurabh Mukherjea, a prominent fund manager at Marcellus Investment Managers, argued that some students could achieve greater economic success by stopping their studies after Class 12 rather than pursuing a four-year degree. He pointed out that only three out of every 100 graduates secure employment in the year they complete their studies, highlighting a growing disconnect between education and job market demands. Despite these warnings, India remains committed to expanding access to higher education. The government’s Planning Commission data indicates that the country adds approximately 8–9 million graduates annually, making it the second-largest producer of graduates globally after China. However, the number of available jobs is far lower, leading to intense competition for limited positions. The State of Working India Report 2026 by Azim Premji University notes that nearly 40% of graduates aged 15–25 remain unemployed, while around 20% of those aged 25–29 are still without work. This situation is exacerbated by the ongoing contraction in sectors traditionally reliant on highly educated workers, such as information technology and manufacturing. Technology firms, software companies, and automakers have collectively announced over 1 lakh layoffs this year alone. Five of India’s largest IT firms have already cut more than 7,000 jobs in fiscal year 2026. These developments underscore a fundamental shift in labor market dynamics, where the demand for skilled professionals is declining, and the focus is increasingly shifting toward practical, hands-on expertise. As a result, the notion that a college degree guarantees employment is being challenged more than ever before. Notably, the recommendations from India’s top economists align with the views of tech magnate Elon Musk, who has long criticized the value of traditional college education. While Musk’s comments have often been dismissed as a provocative statement, the increasing agreement among India’s policy makers suggests a realignment in how the country approaches workforce development. Sanjeev Sanyal’s suggestion that students should prioritize work experience over formal education marks a departure from conventional wisdom, particularly in a society where academic credentials have historically been considered a prerequisite for success. This evolving narrative raises critical questions about the future of education in India. Will the government continue to promote higher education despite the current economic realities, or will it begin to embrace alternative models of skill acquisition and career training? For now, the debate remains unresolved, with students and families caught between conflicting messages, one urging them to pursue traditional academic pathways and the other advocating for a more pragmatic approach to employment.