One of the critical things that organizations need to sustain business today is innovation. Companies cannot focus on innovation if they don't have adequate skills. India's higher education system is choking, unable to keep up with the numbers of aspirants. The quality of teaching is also falling. Meanwhile, the government sets unnecessarily high eligibility criteria for jobs that does not mean to have very high skills, hierarchies are rigid. The shortage of Indian knowledge professionals arises from low employability and competing demand from the domestic market as the economy grows.
One of the main reasons for lack of skilled professionals could be attributed to the mismatch between industry requirements and academic curricula of most of the professional colleges. For example, approximately 2000 MBA students who graduate from any IIM and 10 other premier schools every year could be considered suitable for employment, while only half of the 84,000 graduates from the ALTAIC-approved Tier II Business Schools can be considered employable.
The success of an enterprise revolves around the entrepreneur and its employees, provided the employees are skilled and efficient. Inefficient human factor and unskilled manpower create innumerable problems for the survival of these industries. Non availability of adequate skilled manpower in the rural sector poses problem to these industries.
Another cause for this situation is that the education system in India encourages institutes in imparting a theoretical education and not by emphasizing on the partaking a practical approach towards understanding of the industry in which the students are to be employed in future, the education system is where the amendment is needed.