Physics Wallah

MBA Graduates Outpace BTech in Employability: 2026 Report Reveals a 72.76% Employability Rate

India Skills Report 2026 places MBA graduates ahead of B.E./B.Tech graduates in employability, at 72.76% and 70.15%, respectively. However, both groups saw declines from last year. The report highlights AI, data analytics, cloud computing, cybersecurity, and workplace skills as important factors shaping graduate employability.
authorImageAnshika Agarwal9 Nov, 2026
MBA Graduates Outpace BTech in Employability

According to the India Skills Report 2026, MBA graduates are more employable than engineers. MBA graduates scored 72.76 percent, ahead of B.E./B.Tech graduates at 70.15 percent, a gap of 2.61 points by our calculation. But neither group is celebrating: MBA employability fell from 78 percent last year, and B.E./B.Tech slipped from 71.5 percent.

The decline sits against a rising national picture. India's overall employability improved to 56.35 percent in 2026 from 54.81 percent in 2025. So why did the two most employable degree groups slip while the country as a whole improved? 

The report offers some answers, and they say as much about what employers want as about the degrees themselves.

How Do Degrees Compare on Employability?

Employability varies across qualifications, with MBA and B.E./B.Tech graduates recording the highest scores among the categories listed. However, the year-on-year changes tell a more varied story: some fields have improved, while others have seen a decline. 

The comparison below shows how different qualifications performed in 2026 and how their scores changed from the previous year.

Qualification

Employability 2026

Previous year

MBA

72.76%

78%

B.E./B.Tech

70.15%

71.5%

MCA

68.25%

Slightly higher

Commerce

62.81%

55%

Science

61%

58%

Pharmacy

58%

56%

Arts

55.55%

Small improvement

ITI

45.95%

41%

Polytechnic

32.92%

Improved

India's overall employability rose to 56.35 percent in 2026 from 54.81 percent in 2025.

Why Did MBA Employability Fall From 78 Percent?

The report points to a shift in what managerial readiness means.

The report reads the MBA drop as an industry shift toward applied, cross-domain managerial expertise, and as a sign that candidates need more advanced managerial skills. It describes engineering's slip from 71.5 percent as stability in technical domains despite rising demands for specialisation.

The fall is large for a headline group. At 72.76 percent against 78 percent a year earlier, MBA employability dropped by more than five points, while still staying the highest among the degree groups listed.

Which Engineering Branches Hold Up the Average?

The 70.15 percent B.E./B.Tech figure hides a wide range. Among engineering specialisations, the report found:

  • Computer Science: 80 percent

  • Information Technology: 78 percent

  • Instrumentation Engineering: 77 percent

  • Electronics and Communication: 75 percent

  • Mechanical Engineering: 63 percent

The report's own conclusion is that tech-focused specialisations continue to dominate.

 Computer Science graduates lead engineering at 80 percent employability, higher than the MBA average of 72.76 percent.

The stronger scores in Computer Science, IT and related fields point to the continued relevance of technology-focused knowledge in the job market. For graduates and aspiring developers looking to build practical application development skills, the PW Skills Full Stack Development with AI Programme covers web development concepts alongside AI-powered tools.

What Are Employers Looking For?

Technical skills and workplace skills, with AI shaping recruitment.

The report identifies AI, data analytics, cloud computing and cybersecurity as the most in-demand skills across sectors. It also flags a widening need for communication, problem-solving, digital literacy and adaptability as AI-led and remote work models expand.

Hiring itself is changing. 70 percent of IT organisations and 50 percent of BFSI organisations report full or partial AI adoption in recruitment. Hiring intent is also rising: organisations project that 40 percent of planned FY 2026-27 positions will be new roles, up from 29 percent last year. In the IT sector, freshers make up 35 percent of new hires.

70 percent of IT organisations and 50 percent of BFSI organisations report full or partial AI adoption in recruitment.

Tip: Whatever your degree, pair it with one in-demand technical skill and the workplace skills employers list, such as communication and problem-solving.

Want to develop practical data analysis skills for a changing job market? Explore the PW Skills Data Analytics with AI Course to learn how data tools and AI can support business analysis and decision-making.

What Does the Employability Score Actually Measure?

The India Skills Report uses the ETS Wheebox Global Employability Test to assess job readiness. A candidate is considered employable if they score above 60% in the assessment, which evaluates educational and technical knowledge alongside communication, critical thinking, adaptability and other workplace skills.

The 2026 report's assessment covered more than 700,000 candidates across 28 states and 9 Union Territories, with participation from over 1,000 employers. This provides a broad view of how candidates perform against the test's job-readiness benchmark.

However, an employability score is not the same as an employment or placement rate. It indicates whether candidates meet the assessment's benchmark, not whether they have secured jobs or what salaries they earn.

Key Takeaways

  • MBA graduates scored 72.76 percent on employability, ahead of B.E./B.Tech graduates at 70.15 percent.

  • MBA employability fell from 78 percent, and B.E./B.Tech fell from 71.5 percent.

  • India's overall employability rose to 56.35 percent from 54.81 percent.

  • Computer Science (80 percent) and IT (78 percent) lead engineering, while Mechanical Engineering sits at 63 percent.

  • AI, data analytics, cloud computing and cybersecurity are the most in-demand skills, alongside communication and problem-solving.

  • Employability in the report means scoring above 60 percent on the Global Employability Test.

So, Do MBA Graduates Really Outpace BTech Graduates?

On this report's measure, yes, by 2.61 percentage points on average. But the lead is narrower than it looks. Both groups recorded lower employability scores than last year, with MBA seeing a sharper decline. The engineering average also hides considerable variation across specialisations.

The findings suggest that a degree alone does not determine job readiness. Employability also depends on the relevance of a graduate's technical knowledge, practical capabilities and workplace skills. This is reflected in the differences across engineering branches and the growing importance of skills such as AI, data analytics and problem-solving.

Ultimately, the report highlights the importance of combining academic qualifications with skills that match changing workplace requirements.

avatar

Get Free Counselling Today

and Clear up all your Doubts

Talk to Our Counsellor just by filling out the form.
Student Name
Phone Number
IN
+91
OTP
Join 15 Million students on the app today!
Point IconLive & recorded classes available at ease
Point IconDashboard for progress tracking
Point IconLakhs of practice questions
Download ButtonDownload Button
Banner Image
Banner Image
Free Learning Resources
Know about Physics Wallah
Physics Wallah is an Indian edtech platform that provides accessible & comprehensive learning experiences to students from Class 6th to postgraduate level. We also provide extensive NCERT solutions, sample paper, NEET, JEE Mains, BITSAT previous year papers & more such resources to students. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.
We Stand Out because
We provide students with intensive courses with India’s qualified & experienced faculties & mentors. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.
Our Key Focus Areas
Physics Wallah's main focus is to make the learning experience as economical as possible for all students. With our affordable courses like Lakshya, Udaan and Arjuna and many others, we have been able to provide a platform for lakhs of aspirants. From providing Chemistry, Maths, Physics formula to giving e-books of eminent authors like RD Sharma, RS Aggarwal and Lakhmir Singh, PW focuses on every single student's need for preparation.
What Makes Us Different
Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others

Copyright © 2026 Physicswallah Limited All rights reserved.