India’s Youth Unemployment Crisis: A Wake-Up Call for Modi’s Government

The recent protests by Gen Z students in India over leaked exam papers may have been sparked by a specific incident, but they are symptomatic of a deeper malaise afflicting the country’s youth. The frustration and desperation etched on the faces of young Indians as they confront the harsh reality of limited job opportunities is a stark reminder that Prime Minister Narendra Modi’s government has yet to deliver on its economic transformation promises.

At the heart of this crisis lies a fundamental mismatch between the supply of educated graduates and the demand for secure, well-paying jobs. Graduate unemployment among 15-to-25-year-olds stands at nearly 40%, with graduates accounting for two-thirds of the country’s unemployed in 2023. Millions of young Indians are pinning their hopes on a handful of ultra-competitive entrance exams, such as the NEET and JEE, which offer one of the few reliable paths to secure employment.

Students like Dimpy Gola, who sat the NEET exam twice this year, are caught in a cycle of frustration and despair. Even if they manage to secure admission to medical college, their prospects of finding a job remain uncertain. As one student put it, “there are always a hundred other people desperate enough to do the job for less.”

The government’s response has been inadequate. Education Minister Dharmendra Pradhan’s resignation last week was a meager concession to the growing anger among young Indians. The Modi administration has failed to address the structural issues driving graduate unemployment, despite its promises of economic transformation. In fact, data suggests that job creation has failed to keep pace with the expansion of higher education.

Between 2004 and 2023, India produced roughly five million graduates each year, but only 2.8 million found jobs, and even fewer secured salaried employment. This gap between supply and demand has created a toxic environment where companies can pay low wages to desperate young Indians.

The protests by Gen Z students are not just about accountability; they’re also about the government’s failure to deliver on its promises. The Modi administration must recognize that this crisis is not just an economic issue, but a social one that requires a fundamental shift in policy priorities. It’s time for the government to acknowledge the limits of its current approach and adopt more comprehensive solutions that address the root causes of graduate unemployment.

The consequences of inaction will be severe. As Alexandra Hermann Prasad, lead economist at Oxford Economics, noted, frustrations over education and employment are emerging as one of the biggest vulnerabilities for the Modi government. The protests may have subsided for now, but the underlying issues remain. It’s imperative that the government takes concrete steps to address graduate unemployment, or risk facing the wrath of a disillusioned young population.

The time has come for the Modi administration to listen to the concerns of India’s youth and act decisively to address this crisis. The country cannot afford to wait any longer.