The demand for engineering graduates in FY24 is predicted to dip by 32 per cent compared to the same period last year due to muted market sentiments and a widening gap in skills for emerging technologies, as per a recent report.

With the widening skill gap, only 45 per cent of job-seeking graduates deemed employable, as per the Teamlease Digital report cited.

India is poised to generate 3 lakh Gen AI-related jobs by 2025, prompting substantial training investments by IT giants, Teamlease Digital’s Business Head for IT Staffing, Krishna Vij told Republic Business.

Only 1.55 lakh freshers are likely to be recruited in FY24 versus 2.3 lakh in FY23, among approximately 15 lakh engineering graduates in the country. Salaries for entrants in the country range between Rs 3-5 lakh, the data suggests.

As major IT companies freeze fresher intake, companies are investing in training and upskilling for the entrant workforce to be industry-ready. As per Vij, major players have collectively trained nearly seven lakh employees, with investments channelled into foundational models, driving advancements in applications and infrastructure.

“Leading IT firms commit around $1 billion to boost AI capabilities over the next three years. The Gen AI market in India is projected to surpass $17 billion by 2030, offering a significant opportunity for strategic investments,” Vij said.

Simultaneously, the report analyses that alternate sectors are opening up demand, including Global Capability Centers (GCCs) and non-tech sectors like BFSI, communication, retail, energy and healthcare apart from engineering research and development (ER&D)

Companies are looking for a combination of soft and hard skills in potential hires.

“A nuanced understanding of generative models, particularly large language models like GPT, is pivotal. In addition to technical skills, strategic emphasis on analytical thinking, critical reasoning, and adaptability ensures a competitive advantage,” Vij noted.