A new report confirms what you probably know - only a small fraction of the country's fresh engineering graduates are employable.
India churns out about 230,000 engineers every year but the standard of education is poor in many of the small colleges which suffer from weak infrastructure and inadequate faculty. Graduates from top colleges often prefer to pursue a degree in management or seek a job outside the country. Local companies often have to invest in expensive training programmes to impart skills that they should have acquired in college.
A copy of the report with recommendations is available here.