Shocking!!! Media and Government are Blaming Global Slowdown for IIT's Placement Crisis: But the Reality is Something Different

The IIT Placement Crisis – What Does it Mean for Indian Engineering?

The Indian Institutes of Technology (IITs) have long been considered the pinnacle of engineering education in India.

However, the placement scenario for the 2024 batch paints a troubling picture.

With thousands of graduates still unplaced, even at these prestigious institutions, the situation for other engineering colleges across India could be far worse.

If IITs are facing a placement crisis, what does this imply for students from other institutes with fewer resources and industry connections?

When discussing the placement scenario at IITs, many colleagues and academic professionals quickly pointed to the global economic slowdown as the primary cause.

But being in the technology space, I wasn’t fully convinced. After all, with the advent of AI and emerging technologies, one would expect demand for IIT graduates to rise, not fall.

This led me to do my own research, and the findings were startling. The real reasons behind the placement crisis were not being highlighted, and the underlying issues were much more profound.

Facts on the Ground for 2024 – A Tough Year for IITs

The 2024 placement season at IITs has been particularly challenging, with more than 8,000 students unplaced across various IIT campuses. This represents 38% of the total students registered for placements—a significant jump from the 19% unplaced in 2022.

Salary Packages: Traditionally, IIT graduates have been offered attractive salary packages, but this year has seen a noticeable dip. The average salary package has dropped to a modest ₹15-16 lakhs per annum, compared to previous years where salaries were often much higher.

In some extreme cases, students received offers as low as ₹4 lakhs per annum, an unusually low figure for IIT graduates.

These figures reflect a more cautious approach by employers, who are scaling back on high compensation packages due to economic uncertainty and sectoral shifts.

The situation is even more alarming when comparing data from previous years. In 2023, 21% of IIT students remained unplaced, a figure that has nearly doubled in 2024. The older IITs, traditionally considered more prestigious, saw 37% of their students unplaced this year, compared to 22% in 2023.

Meanwhile, the newer IITs have struggled even more, with 40% of students unplaced—a sharp increase from the 18% unplaced in 2023.

Scenario Breakdown:

Older IITs: Even the top-tier IITs like IIT Bombay, IIT Delhi, and IIT Madras faced significant placement challenges, with many students either receiving lower-than-expected offers or not getting placed at all.

Out of 16,400 students registered for placements, only 10,310 were placed, leaving 6,090 unplaced. The unplaced percentage rose sharply from previous years, marking a worrying trend.

Newer IITs: Institutes such as IIT Bhubaneswar, IIT Gandhinagar, and IIT Jodhpur have been hit harder. With limited industry connections and smaller alumni networks compared to their older counterparts, newer IITs saw 40% of their graduates remain unplaced, doubling the number from the previous year.

These statistics highlight a grim reality: even the best engineering institutes in the country are struggling to secure jobs for their graduates.

The rise in unplaced students and the drop in salary packages signal a broader issue within the engineering education and job market in India.

These figures suggest that something more than a global economic slowdown is at play.

While global economic conditions certainly impact hiring, the magnitude of the issue in IITs points to other underlying factors that need attention—factors that we’ll explore further in the next sections.

The Real Reasons Behind the Slowdown

While many have attributed the placement slowdown at IITs to the global economic recession, my research has uncovered a far more complex set of issues.

The global slowdown is not as large a factor as often portrayed. Instead, three primary issues stand out:

1. A rapid increase in student seats, leading to an oversupply of engineers.

2. Shifts in global hiring practices, favouring more specialized, interdisciplinary roles.

3. A rigid IIT curriculum that hasn’t evolved to meet the changing demands of the job market.

These factors combined have contributed more significantly to the placement crisis than initially thought.

Let’s break these down in more detail.

1. High Increase in Seats Compared to Demand

In recent years, IITs have seen a dramatic increase in the number of seats. Between 2020 and 2024, the intake at IITs has increased by roughly 1,440 seats. While this was intended to give more students access to high-quality education, it has led to an oversupply of graduates.

Unfortunately, this rapid expansion has not been matched by a corresponding rise in demand for engineers in the job market.

Trend Analysis: TOTAL Students vs. PLACED STUDENTS at IITs (2020-2029)

Year	Total IIT Seats	Students Registered for Placement	Unplaced Students
2020	16,300	15,000	2,050
2021	16,700	15,500	2,000
2022	17,385	16,500	3,400
2023	17,740	19,000	6,090
2024	17,740	21,500	8,090

The government’s move to increase seats at IITs, while well-intentioned, has not been accompanied by proper assessments of industry needs.

This surge in the number of graduates has led to fierce competition for fewer job openings, contributing significantly to the placement slowdown.

Institute Name	Total Number of B.Tech Seats
IIT Bhubaneswar	476
IIT Bombay	1356
IIT Mandi	520
IIT Delhi	1209
IIT Indore	480
IIT Jodhpur	550
IIT Gandhinagar	370
IIT Patna	733
IIT Hyderabad	595
IIT Goa	157
IIT Jammu	280
IIT Dharwad	310
IIT Tirupati	244
IIT Bhilai	243
IIT Pallakad	200
IIT Ropar	430
IIT Guwahati	952
IIT Roorkee	1353
IIT Kharagpur	1869
IIT Madras	1134
IIT (ISM) Dhanbad	1125
IIT Kanpur	1210
IIT (BHU) Varanasi	1589

The focus seems to have been on creating more engineers, rather than ensuring that the economy can absorb them.

This has created an imbalance between the number of graduates and available jobs, especially as the job market in engineering fields has evolved, favouring more specialized and cross-disciplinary roles.

Predicted Scenario of Seat Increase in next 5 years

The Government’s ambitious plan to increase IIT seats by 1,000 seats per year is meant to provide more students access to high-quality education. However, this could backfire if the demand for engineering graduates does not match this rising supply.

Year	Expected Increase in Seats	Expected Students Registering for Placement
2025	18740	24725
2026	19740	27939
2027	20740	31571
2028	21740	35676
2029	22740	40313

The current job market is shifting toward specialized skills, and unless IITs adapt their curriculum and industries create more job opportunities, these additional seats may result in more unplaced graduates.

As outlined in the following Table in next section, this increase in seats may worsen the placement crisis.

2. Change in Hiring Nature of Global Companies

The second key reason for the placement crisis is the changing hiring nature of global companies. As industries worldwide adopt AI, automation, and data-driven processes, the demand for generalist engineers has declined.

Instead, companies are looking for professionals who have specialized knowledge in areas like machine learning, data science, sustainable technologies, and automation.

Many traditional engineering jobs are becoming redundant due to advances in technology, and companies are now hiring fewer generalist engineers.

This shift in the hiring landscape means that the skills many IIT graduates possess do not align with current market needs.

Skills in Demand	Nature of Work	Industry Impact
AI & Machine Learning	Data-driven decision-making	Technology, Healthcare
Green Tech & Sustainability	Environmental solutions	Manufacturing, Energy
Data Science	Advanced analytics	Finance, Retail
Cybersecurity	System and data security	Finance, IT, Government
Cloud Computing	Cloud architecture and services	IT, E-commerce, Media
Blockchain	Decentralized solutions	Finance, Supply Chain, Healthcare
Internet of Things (IoT)	Connected devices and systems	Manufacturing, Healthcare

3. Rigid Syllabus of IITs

Perhaps the most concerning issue is that the IIT curriculum has not evolved fast enough to keep pace with the global changes in technology and industry demands.

While top global universities like MIT, Stanford, and Oxford offer highly flexible and interdisciplinary courses, IITs still focus largely on traditional engineering disciplines.

When comparing the curriculum of IITs with institutions like MIT or Stanford, one glaring difference is the lack of interdisciplinary focus. Global universities encourage students to explore a mix of fields, such as AI with medicine, or data science with sustainability.

In contrast, the rigid curriculum at IITs often forces students to stay within the boundaries of their chosen discipline, limiting their exposure to new and emerging fields.

In the 'Rigid Syllabus of IITs' section, I analyzed and compared the syllabus of top global engineering institutes like Harvard, Stanford, MIT, University of Oxford, University of Cambridge, and others.

The analysis revealed that IITs' syllabi are largely designed to produce generalist engineers, while top global universities focus on creating interdisciplinary and highly skilled engineers in niche areas.

Difference Between Generalist and Interdisciplinary Engineers:

• Generalist Engineers: Have a broad understanding of core engineering principles but lack specialization. Historically, this made IIT graduates highly versatile and employable across sectors, but in today’s evolving market, it's becoming less competitive.

  
  

• Interdisciplinary and Highly Skilled Engineers: These engineers are trained in multiple fields, allowing them to solve complex, cross-functional problems.

  
  

Top global universities offer flexible, interdisciplinary programs where students can blend subjects like AI, data science, and sustainability, making them highly sought after in niche, high-demand sectors like biotech, AI, and quantum computing.

Here is the Tabular Comparison explaining the differences between top global engineering institutes and IITs:

Category	Global Institutes (Harvard, MIT, Stanford, etc.)	IITs (Indian Institutes of Technology)
Curriculum Flexibility	Flexible, allows course selection from diverse fields (AI + Healthcare, etc.)	Structured, discipline-specific programs (Mechanical, Civil, Electrical)
Interdisciplinary Focus	Strong focus on merging fields (Biomedical Engg., AI, Environmental Engg.)	Siloed curriculum with limited interdisciplinary integration
Research & Innovation	Early exposure to cutting-edge, cross-disciplinary research projects	Research focus mainly in traditional engineering fields
Industry Collaboration	Deep partnerships with diverse sectors (biotech, space tech)	Collaboration mainly with core sectors (IT, manufacturing)
Electives & Skill Dev.	Electives in business, arts, and humanities available	Focused electives deepening knowledge within core disciplines

As explained earlier, Historically, IIT graduates were highly favoured because of their strong foundational engineering skills, but as global companies are now seeking specialized expertise, IITs risk falling behind without adapting their curriculum to more interdisciplinary approaches.

Without the flexibility to pursue courses across multiple domains, many IIT graduates lack the specialized knowledge needed to compete in today’s job market. This lack of flexibility is one of the main reasons why IIT graduates, despite their high-level education, are struggling to find jobs that meet their expectations.

Other Factors – Student Arrogance 

Student Arrogance

Another factor contributing to the placement slowdown is that 10-15% of students rejected job offers due to low salary packages. IIT students, expecting high packages, often turn down lower-paying roles, which adds to the number of unplaced graduates.

This "arrogance" or overconfidence in expected salary can sometimes lead to missed opportunities, especially in a job market that is tightening due to external factors.

Media should start highlighting Real Issues

While the global slowdown has affected the job market to some extent, the placement crisis at IITs is more deeply rooted in oversupply of graduates, changing industry demands, and a rigid curriculum that has not adapted to modern skill needs.

To tackle this crisis, IITs need to revise their curriculum, the government must assess industry needs before further increasing seats, and students should be open to roles that may not offer immediate high salaries but provide valuable experience.

Only by addressing these issues can IITs maintain their reputation as the country’s premier engineering institutions.

Future Outlook for IIT Placements: What to Expect

The placement scenario for IIT students over the next five years is expected to be shaped by several global factors:

1. Global Economic Conditions: The economy is projected to recover slowly, but hiring in sectors like technology, healthcare, and finance will remain cautious due to automation and cost-cutting.

2. Shift in Demand for Skills: Specialized skills in areas like AI, data science, and sustainability will be in high demand. Traditional engineering roles may decline, and IITs must adapt by offering courses in these emerging fields to remain globally competitive.

3. Regional and Global Talent Competition: The rise of remote work is leading to companies hiring across borders, intensifying competition for IIT graduates, who now compete with talent from around the world.

4. Sectoral Shifts: The tech sector is evolving, with a focus on niche roles like AI, cybersecurity, and quantum computing, while traditional sectors such as manufacturing may slow down due to automation.

5. Supply Chain Shifts: Post-pandemic supply chain changes may tighten the job market for traditional engineering roles, making it necessary for graduates to pivot toward sustainable technologies and green solutions.

Projections for IIT Placements (2024-2029):

• 2024-2025: Placement rates may range between 55%-60%, with increased competition from both domestic and international talent pools.

• 2026-2027: As global economies stabilize, placement rates could rise to around 70%, but opportunities will be more specialized.

• 2028-2029: Placement rates could recover to 75% for graduates with emerging skills, though traditional roles may still face pressure.

Projections for IIT Placements

Year	Expected Increase in Seats	Expected Students Registered for Placement	Expected Percentage Placement	Expected Students Placed
2025	18,740	24,725	60.00%	14,835
2026	19,740	27,939	60.00%	16,764
2027	20,740	31,571	55.00%	17,364
2028	21,740	35,676	55.00%	19,622
2029	22,740	40,313	55.00%	22,172

To sustain or improve placement rates, IITs must diversify their curricula, focus on emerging technologies, and collaborate with industries on future-proof careers.

What Should IITs Do?

IITs need to revamp their curricula to focus more on interdisciplinary studies, offering students the chance to gain expertise in emerging fields like AI, robotics, and sustainability. They should collaborate more with industries to ensure that students are being trained in skills that match the demands of the job market. This will ensure that IIT graduates remain competitive in a global context.

What Should the Government Do?

The government should slow down the pace of seat expansion and conduct a thorough demand-supply analysis to understand the job market before further increasing seats. Additionally, it should work with industry leaders to create more internship and research opportunities that align with the evolving demands of the job market.

What Should Students Do?

IIT students must be more flexible in their learning and adapt to new trends. By gaining additional skills in areas like data science, AI, and green technologies, they can better position themselves for the future. It’s crucial for students to focus not only on technical expertise but also on soft skills, critical thinking, and problem-solving across multiple disciplines.

The placement crisis in IITs is not just a product of the global economic slowdown, but a result of increased student intake, shifts in global hiring practices, and a rigid curriculum that hasn't kept pace with the evolving demands of industries.

To turn things around, IITs, the government, and students must all play their part in adapting to the new realities of the job market.

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For more information or any assistance, please feel free to contact me in the order of my preference:

WhatsApp: +91 8086 01 5111

Email: mail@deepeshdivakaran.com

Phone: +91 8086 01 5111

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