Exposing the ₹100,000 Crore Scam: How Colleges Exploit Students in the Name of Placements

A Hidden Industry Profiting at Students' Expense

Beneath the appearance of India’s flourishing higher education landscape lies a shadow industry worth an estimated ₹100,000 crore.

This sprawling ecosystem thrives on the fears of millions of students and the aspirations of their families.

Promoted as indispensable placement-oriented training programs, these schemes exploit students from economically vulnerable backgrounds, promising employability but delivering disappointment.

Despite draining family savings and accumulating debt, many graduates remain unemployed or underemployed, raising serious concerns about the efficacy and ethics of this hidden industry.

The Grim Truth Behind Placement Numbers: Unemployment, Underemployment, and Skill Gaps in India

The employment crisis among Indian graduates continues to paint a grim picture, as recent data reveals troubling trends over the past three years. Despite the claims of near-perfect placement rates by many colleges, the reality is stark: 43% of graduates under 25 years were unemployed in 2021, a figure that has only marginally improved to 40% in 2023.

Additionally, a significant portion of graduates remain underemployed, with 28% in 2021 and 25% in 2023 working in roles below their skill level. On the other hand, companies report an increasing number of unfilled vacancies due to a lack of industry-ready candidates, rising from 22% in 2021 to 28% in 2023.

These statistics highlight the systemic disconnect between education and employment, raising urgent questions about the effectiveness of placement-oriented training programs and the accountability of higher education institutions.

Rooted in Expectations: How Indian Culture Fuels the Placement Frenzy in Colleges

In India, the cultural fabric deeply intertwines education and social status, creating an unspoken expectation that a college degree guarantees a stable, well-paying job.

This belief is not just an aspiration but a societal norm, with families often investing their life savings to secure higher education for their children. In many communities, a graduate’s job is more than an individual achievement—it’s a marker of family pride and a status symbol.

The pressure to secure employment immediately after graduation leads parents and students to prioritize colleges that promise high placement rates, regardless of actual outcomes.

This cultural backdrop enables colleges and third-party programs to exploit these expectations, marketing themselves as pathways to guaranteed success.

However, this has also perpetuated a system where superficial placement metrics overshadow genuine skill-building, leaving many graduates unemployed or underemployed while fuelling a silent ₹100,000 crore industry of false promises.

This expectation is starkly different from the situation in countries like the United States and Europe, where colleges focus primarily on equipping students with critical thinking skills, foundational knowledge, and real-world readiness. In these regions:

Self-Driven Job Markets: Students are expected to actively seek employment opportunities post-graduation, leveraging internships, co-op programs, and networking.

Emphasis on Skill Development: The emphasis is on developing transferable skills that align with evolving industry needs rather than relying solely on placement guarantees.

Role of Colleges: Institutions act as facilitators, providing career services and networking opportunities but rarely marketing themselves based on placement statistics.

The Indian context, rooted in societal pressure and the expectation of job assurance, has created fertile ground for exploitation.

Colleges and third-party programs take advantage of this cultural dynamic, perpetuating a system where placement numbers are inflated, and genuine skill-building takes a backseat.

The Mirage of Indian Placement Promises: Marketing Deception and Ground Realities

Every year, colleges across India lure students and their parents with glossy advertisements showcasing attractive placement numbers.

These ads promise high-paying jobs and placement guarantees, creating an illusion of assured success.

However, the reality is far from these claims.

Luring with Placement Guarantees:

• Parents and students are often drawn to institutions that boast high placement statistics, believing that their investment in education will secure a stable future.

• The truth remains: no college can actually guarantee placements. Placements are contingent on market dynamics, student performance, and industry needs, none of which are entirely within a college’s control.

Why the Numbers Don’t Add Up:

• If every college’s claims of near-perfect placement rates were accurate, India would not face a staggering unemployment rate among its graduates.

• As per a 2024 report, 40% of university graduates under the age of 25 remain unemployed, while companies continue to complain about the lack of qualified candidates.

Systemic Negligence:

• Despite the glaring contradictions, regulatory bodies like UGC and AICTE have largely failed to address these malpractices.

• The thriving ₹1 lakh crore ecosystem continues unchecked, fuelled by misinformation and the desperation of families seeking better opportunities for their children.

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Case Studies: Revealing the Dark Side of Indian Placement Practices

Case Study 1: Phantom Placements

In some institutions, companies collaborate with training programs and colleges to issue fake offer letters.

These students are never actually hired, but their "placement" is counted in institutional metrics to boost NAAC, NBA, and NIRF rankings.

Example Scenario:

An engineering student receives an offer letter from a reputed company with no intention of onboarding the candidate.

The student’s placement is publicized by the college to attract new admissions while the graduate remains unemployed.

Case Study 2: Irrelevant Job Offers

Students are often placed in jobs that bear no relevance to their field of study, simply to inflate placement numbers.

Example Scenario:

A mechanical engineering graduate is placed in a telemarketing role with a monthly stipend below minimum wage.

The college counts this as a successful placement, masking the underemployment reality.

Case Study 3: Training as a Revenue Stream

Mandatory training programs are marketed as "essential" for placements, with fees ranging between ₹20,000 to ₹75,000.

Example Scenario:

A final-year student is required to enrol in a soft skills course managed by a third-party company tied to the college.

Despite completing the course, the student fails to secure employment, leaving families financially strained.

Case Study 4: Inflated Statistics

Colleges manipulate placement data by including internships, contractual work, and freelance gigs as full-time employment.

Example Scenario:

A student is hired for a three-month unpaid internship but is listed as "placed" in the college’s annual report.

This practice distorts the true placement rate and misleads prospective students.

Case Study 5: Lack of Industry Alignment

Colleges fail to collaborate with industries to ensure curricula and training programs meet job market requirements.

Example Scenario:

Graduates from an IT program lack coding skills required by tech companies, despite attending multiple training sessions.

Employers reject these candidates, citing gaps in foundational knowledge

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Why It Fails to Deliver Outcomes

Despite the hefty price tag, these programs fall woefully short of their promises

Disconnect from Industry: The training content rarely aligns with the dynamic needs of industries, rendering students ill-prepared. For example, a student from an engineering program may be offered a generic "soft skills" training course rather than a focused module on advanced technical skills like AI or data analytics, which are in high demand.

Focus on Superficial Metrics: Instead of fostering critical thinking, problem-solving, or technical expertise, the emphasis remains on resume-padding certifications.

Inflated Placement Data: Many colleges manipulate placement statistics by counting irrelevant or short-term job offers.

Lack of Long-Term Skill Development: These programs fail to focus on long-term career skills, often teaching students superficial tricks for interviews without addressing deeper gaps in their knowledge.

Inadequate Industry Exposure: Programs often lack practical exposure, such as live projects or internships, which are critical for building real-world experience.

Overemphasis on Placements, Not Careers: The programs focus excessively on immediate job placements, ignoring career progression and growth.

Impact on Students and Society

Financial Strain: Families deplete savings or take loans, leaving students burdened with debt before they even begin their careers.

Emotional Stress: The financial burden coupled with unemployment leads to anxiety, depression, and disillusionment.

Erosion of Trust: Over time, the credibility of higher education institutions diminishes, affecting new enrolments and public perception.

Root Causes

Policy Failures: Lack of stringent regulations and oversight allow these exploitative practices to flourish unchecked.

Subpar Curriculum: Outdated syllabi fail to equip students with relevant skills, creating a gap filled by private training companies.

Profit Motive: Institutions prioritize short-term financial gains over their responsibility to provide holistic, quality education.

Call to Action

Regulatory Reforms:

• Transparency in Fees: The Ministry of Education must require all colleges to clearly disclose the cost of additional training programs and placement services upfront, ensuring students are not blindsided by hidden fees.

• Optional Participation: Institutions must be mandated to make all third-party training programs optional, with no penalties for students who choose not to participate.

• Outcome-Based Metrics: Regulatory bodies should introduce strict guidelines for evaluating the effectiveness of training programs, ensuring alignment with measurable placement outcomes.

Visionary Curriculum Development:

• Skill Integration: Colleges should integrate key industry-required skills, such as digital literacy, problem-solving, and advanced technical expertise, into the standard curriculum.

• Global Benchmarking: Curricula must be periodically updated to match global standards and meet evolving industry needs.

• Practical Learning: Emphasis should be placed on experiential learning through case studies, projects, and industry simulations directly within courses.

Industry Collaboration:

• Internship Mandates: Foster partnerships with industries to offer structured internships as a required part of degree programs.

• Apprenticeship Models: Establish co-op or apprenticeship models where students alternate between classroom learning and real-world work experience.

• Sector-Specific Training: Collaborate with leading companies to develop sector-specific training modules that address industry-specific skill gaps.

Accountability Measures:

• Audited Metrics: Require colleges to submit independently audited placement data to regulatory bodies annually.

• Student Feedback: Introduce mandatory feedback systems where students rate the effectiveness of placement and training services.

• Penalties for Misrepresentation: Impose strict penalties on institutions found manipulating placement statistics or issuing fraudulent offer letters.

Student Awareness Campaigns:

• Educational Workshops: Conduct nationwide workshops to educate students and parents on how to critically evaluate placement claims and training programs.

• Transparency Platforms: Create government-endorsed platforms where students can access verified placement data and reviews of colleges and training programs.

• Counselling Support: Offer free or subsidized career counselling services to guide students in making informed decisions about education and employment pathways.

This ₹100,000 crore industry stands as a glaring indictment of the systemic issues plaguing Indian higher education. Addressing it requires bold reforms, accountability, and a shift in focus from profit to purpose. Only then can we ensure that education serves as a stepping stone to opportunity rather than a burden of false promises.

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