According to the working paper of the Economic Advisory Council to the Prime Minister (EAC-PM), the average salaries of graduates from Indian Institutes of Technology (IITs) have more than doubled between the period 2015-16 and 2023-24, and the number of employed students has also increased.
The report, titled 'How India is transforming educational potential under the New Education Policy 2020,' analyzes employment outcomes and nominal salary trends in fixed groups comprising 17 IITs, 14 Indian Institutes of Management (IIMs), and 22 National Institutes of Technology (NITs). The study showed an improvement in employment and salary indicators across all three groups over the eight-year period, despite the expansion of IITs and NITs beginning to question the capacity of job markets to absorb graduates at the previous pace.
The working paper also points to a broader issue for India's higher education system: expanding access to degrees has not guaranteed a uniform distribution of program quality, employer confidence, or employment opportunities.
Average salary in IIT reached 19.08 lakh rupees
Within the scope of the study, the average salary in 17 IITs grew from 8.80 lakh rupees in 2015-16 to 19.08 lakh rupees in 2023-24, exceeding a doubling over this period. The number of students registered as employed in these institutions also rose from 4,737 to 8,411.
Similar data indicates that in IIMs, the average salary increased from 14.25 lakh to 25.59 lakh over the same period, and the number of employed students grew from 3,776 to 5,965. As for the 22 NITs, average salaries more than doubled—from 5.23 lakh in 2015-16 to 10.65 lakh in 2023-24. Meanwhile, the number of employed students in NITs increased from 9,246 to 13,419.
The report notes that these results reflect the sustained market value of the competencies, selection processes, and networks associated with these educational institutions.
Expansion puts pressure on job markets
Despite the long-term improvement in employment rates and salary levels, the document's authors express concerns about the job ecosystem's ability to keep pace with the expansion of these institutions. The study analyzed changes in enrollment in core programs between 2019 and 2025 within the same institutional panels.
Enrollment in IITs increased by 57.8 percent, reaching 50,595 students from 32,063. In NITs, the growth was 29.7 percent, rising from 57,405 to 74,457. IIMs demonstrated an increase of 38.9 percent, growing from 8,966 to 12,456 students.
The authors point out that the latest expansion has tested the capacity of IIT and NIT job markets to absorb graduates at the previous volume. This implies that improvements in employment and salary indicators over a long period should be viewed against the backdrop of a growing number of students entering these educational institutions.
Comparisons cover four-year undergraduate programs in IITs and NITs, as well as two-year master's programs in IIMs. Employment data pertains to graduating cohorts, while enrollment data compares student numbers in 2019 and 2025.
Higher education expands, but results remain uneven
The study compares these findings with the broader expansion of India's higher education system. The estimated total number of students in higher education has grown by 31.5 percent—from 34.2 million in 2014-15 to 45 million in 2023-24. The number of registered colleges increased from 38,498 to 48,246, and universities and university-level institutions grew from 529 to 1,289.
The authors emphasize that as higher education becomes more accessible, the importance of program quality and the transition from learning to work increases. They term this the problem of 'qualification congestion,' where students increasingly rely on degrees as the most recognized path to better jobs, while employers differentiate between graduates based on their institution, field of study, exam results, experience, and professional connections.
The report also highlights the limited coverage of vocational education. According to the Periodic Labour Force Survey (PLFS), formal vocational or technical training covered only 5 percent of people aged 15-29 in 2025. The authors conclude that India needs stronger alternatives to the traditional degree path, including recognized professional qualifications, structured apprenticeships, and pathways for transitioning between work and further study. They argue that the expansion of higher education must be accompanied by sufficient faculty, infrastructure, and reliable career paths to ensure a successful transition of a larger number of graduates into the labor market.



