In November 2025, the Educational Testing Service (ETS), in collaboration with the Confederation of Indian Industry (CII), All India Council for Technical Education (AICTE), Association of Indian Universities (AIU), and Taggd, released the 13th edition of the India Skills Report for 2026. This comprehensive report sheds light on the evolving dynamics of India's workforce, marked by a notable increase in employability and a shift towards a skill-first economy.
The report highlights a significant rise in India's employability rate, reaching 56.35% in 2026, up from 54.81% in 2025. This growth is driven by the widespread adoption of artificial intelligence, digital skills, and enhanced global workforce mobility. Notably, women's employability now stands at 54%, surpassing that of men at 51.5% for the first time in five years. This shift is attributed to hybrid work models and digital skilling initiatives.
The increased participation of women in various sectors, including Banking, Financial Services, and Insurance (BFSI), education, and healthcare, is evident, especially in Tier-2 and Tier-3 cities. This trend indicates a positive move towards gender parity in the professional landscape.
The report projects that India's gig and freelance workforce will reach 23.5 million by 2030. Project-based hiring has surged by 38% compared to the previous year, although permanent jobs still constitute 72% of employment. The gig economy's growth highlights the shift towards flexible work arrangements.
Positioning itself as a "preferred global source of skilled talent," India holds a significant 16% share of global AI talent, expected to grow to 1.25 million professionals by 2027. The report also reveals that over 90% of employees across sectors utilize Generative AI tools, with substantial adoption in the Information Technology (IT) and BFSI sectors.
Technology, BFSI, Manufacturing, Renewable Energy (RE), and Healthcare continue to be dominant hiring sectors. The hiring intent for the Financial Year 2026-27 stands at 40%, up from 29% in the previous year, driven by sustained demand in these industries.
Computer science graduates demonstrate an impressive 80% employability rate, followed closely by IT engineers at 78%. This reflects a strong industry demand for skills in AI, data analytics, and automation-driven roles. The 22–25 age group leads with 75.7% employability, maintaining its dominance in entry-level hiring.
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