India's unemployment rate has been a significant concern, especially among its youth. According to the Centre for Monitoring Indian Economy (CMIE), the unemployment rate in India stood at 7.45% in February 2025. This indicates a rising challenge for millions of graduates entering the workforce each year. While the competition is fierce, the key to overcoming this challenge lies in gaining internship experience and working on projects during college. These activities are essential for developing job-ready skills and making students more attractive to employers.

The Growing Unemployment Crisis in India

The unemployment rate in India has been fluctuating, but youth unemployment remains a significant problem. According to the Labour Force Survey (LFS), young people (ages 15-29) face much higher unemployment rates than the national average. One of the main reasons for this is the growing mismatch between the skills taught in colleges and the skills employers seek.

Many students graduate without the practical knowledge and industry experience required by today's employers. Furthermore, automation and the rise of emerging technologies are transforming industries, reducing demand for traditional roles while increasing the need for skills in data analysis, cloud computing, AI, digital marketing and Finance. Students who do not adapt to these changes face increased competition in a shrinking job market.

How Can Students Prepare for the Job Market?

Given the high unemployment rate, students must take proactive steps during their college years to improve their employability. One of the best ways to stand out in a crowded job market is through internships and personal projects, which offer practical experience and help students build industry-specific skills that are in high demand.

1. Internships: Gaining Real-World Experience

Internships are an invaluable opportunity for students to gain hands-on experience and develop job-ready skills in a real-world setting. Internships allow students to apply theoretical knowledge, gain industry exposure, and network with professionals in their chosen fields.

In a significant policy shift, the University Grants Commission (UGC) has made internships mandatory for undergraduate students. This decision aligns with the National Education Policy (NEP) 2020, which emphasizes the importance of practical training, research, and internships in undergraduate education.

Under the new UGC guidelines, students are required to complete 8-10 weeks of internships, which amount to 450 hours of work. These internships will be worth 10 credits and are designed to:

• Increase employability by providing relevant work experience.
• Develop research skills and practical knowledge in the chosen field.
• Catalyze a transdisciplinary research culture by encouraging collaboration across academic disciplines.

This initiative is a step forward in ensuring that students gain the experience necessary to be competitive in the job market. Similar policies are being implemented across other sectors, such as law and medicine, where internships are also mandatory.

2. Projects: Building a Strong Portfolio

Along with internships, students should focus on developing a portfolio of projects that demonstrate their technical and soft skills. Projects provide students with an opportunity to apply what they've learned in real-world situations, offering employers a tangible demonstration of their capabilities.

For instance, engineering students can develop software applications, work on machine learning projects, or explore AI-based solutions. For finance students, working on projects like financial forecasting, business valuation, or investment portfolio management allows them to apply classroom theories to real-world business problems. Students in digital marketing can undertake projects involving SEO optimization, Google Ads campaigns, or content strategy development. For HR students, projects related to employee satisfaction surveys, HR policy development, or talent management frameworks can be valuable additions to their portfolios.

By taking on such projects, students can develop a professional portfolio that showcases their hands-on skills, initiative, and creativity. This portfolio can be shared during job interviews or included in a resume to attract the attention of potential employers.

3. Skills Development: Staying Ahead of the Curve

In today's fast-evolving job market, simply having a degree is no longer enough. To remain competitive, students must continually develop job-specific skills and soft skills that align with industry trends.

Technical Skills: As industries become increasingly digitally driven, students must develop skills in areas like coding, data science, cloud computing, and digital marketing. These skills are essential in fields such as technology, business, and engineering. For instance, students pursuing a career in software development should focus on gaining proficiency in programming languages like Python, Java, or JavaScript. Students in digital marketing should understand SEO, content marketing, and social media strategy. For finance students, it's essential to master skills like financial analysis, modeling, risk management, and proficiency with tools like Excel, Bloomberg, and QuickBooks.

Soft Skills: In addition to technical knowledge, employers seek candidates who possess strong soft skills, such as communication, leadership, problem-solving, and teamwork. These skills are essential in any role, as they help students collaborate effectively in work environments and navigate complex challenges. Engaging in group projects, leadership roles, and volunteer work can help students develop these skills and increase their overall employability.

Conclusion: Preparing for the Future

The high unemployment rate in India may present a challenge, but students can take steps to enhance their job prospects. The UGC's decision to make internships mandatory for undergraduate students is a significant step forward in ensuring that students gain valuable work experience and develop the practical skills required by today's employers.

By engaging in internships, building a portfolio of projects, and continuously developing job-ready skills, students will be better positioned to enter the job market and secure fulfilling careers. In today's rapidly changing world, proactive and adaptable students will have the greatest chances of success in the workforce.