Out of about 400 – 500 000 Engineers graduating in the country, 200 000 are in conventional streams ( Mech/ Elect/ Chem/ Civil). Of these, barring about 50 – 70 000 belonging to IITs/ NITs and top Govt/ established Pvtinstitues, rest are from Tier - 4 and below colleges many of whom take months to land a job. In fact many are working for salaries as low as Rs 5 – 8 000/ PM, and find difficult even to pay back their educational loans.
As seen, Tier- 4 and below which are primarily unaided colleges churn out BULK (> 90 % ) of the grads/ post-grads in number and it is this category, which are not able to earn a remuneration commensurate with their academic qualifications, as seen from the next diagram below.
Thus, the market size is significant.
Now let us look at the starting remunerations of the graduate engineers :
The figures shown are median figures.
As can be seen, the remuneration of grads from unaided colleges areBELOW that of Grade – I Diploma holders. Further, many of these engineers are earning LESS than even ITI cert holders !
But the above chart is giving only part of the real picture ! Look at the
What an average Tier- 4 college graduate saves in the first few years is just 1/6th to 1/7th of an NIT/ Grade- 1 college grad saves..... and most of the savings goes to pay back his / her educational loan!..... in effect most grads from tier- 4 does not earn really anything during initial years ! And most of them practically end up working in obscure organizations with very constrained working conditions and abysmal remunerations.
Earlier – out of frustration, many would switch to middle east countries and somehow try settle there. However, that opening appears to have closed permanently in recent times !