Indian graduates are demonstrating a strong aptitude for roles in Artificial Intelligence (AI) and Machine Learning (ML), according to a report released on Tuesday.
The report, by talent assessment firm Mercer Mettl, revealed that Indian graduates have a 46.1% employability rate in AI and ML – the highest among all technical roles.
Covering data from more than 2,700 campuses and over 1 million learners, the report presents a complex landscape marked by both promising adaptability and persistent skill gaps.
It also found that 50% of graduates in India possess the soft skills required for AI/GenAI collaboration, though they need to improve in areas like creativity (44.3% employability). Strong areas include communication skills (55.1%), critical thinking (54.6%), and leadership skills (54.2%). With a 46% employability rate, learning agility remains crucial for navigating the evolving tech landscape.
Further, the report showed that graduates from Tier 1 colleges lead in employability (48.4%), followed by those from Tier 2 (46.1%) and Tier 3 (43.4%) institutions. However, the potential exists across all tiers, particularly in specialized tech areas. Tier 2 graduates excel in UI/UX developer roles, with a 58.3% employability rate.
Delhi reported the highest employability rate (53.4%), followed by Himachal Pradesh and Punjab (51.1%). Uttarakhand and Jharkhand also performed well, with rates of 50% and 49.6%, respectively.
Notably, the report found equal employability for male and female graduates in AI, ML, and data science sectors. However, disparities were noted in software testing.
“In 2025, the employability rate for Indian graduates stands at 42.6%, reflecting a slight decline from 44.3% in 2023, primarily due to evolving industry expectations. However, significant progress has been made in employability for technical roles, as colleges and students increasingly focus on developing skills that align with market demands,” said Siddhartha Gupta, President of Mercer India.
“On the other hand, developing certain non-technical and soft skills presents a more complex learning curve, often requiring additional time to cultivate. This data clearly highlights these trends,” he added.
