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The Indian higher education sector is undergoing a significant transformation, driven by the ambitious National Education Policy (NEP) 2020, which mandates internships as a compulsory component for all graduating students. This policy shift, designed to bridge the gap between academic learning and practical industry experience, aims to equip graduates with the essential skills and hands-on exposure needed to thrive in the contemporary job market. Under this new framework, students can earn a substantial 10 to 15 academic credits through successful completion of internships, underscoring the policy’s emphasis on experiential learning. However, the practical implementation of this policy has revealed a critical bottleneck, particularly within the burgeoning Information Technology (IT) sector. A significant disparity exists between the policy’s mandate and the industry’s current capacity and willingness to absorb a large influx of fresh graduates seeking internships, especially those whose foundational skills are still under development. This dynamic creates a complex challenge, presenting both opportunities and hurdles for educational institutions, students, and companies aiming to navigate this evolving ecosystem.

Sarang Wakodikar, Founder and Director of SETTribe, a company actively positioning itself within this burgeoning educational technology and professional development space, shared his perspective with CB Insights on how his organization defines its market, addresses prevailing customer needs, and carves out its unique niche. Wakodikar’s insights highlight the intricate interplay between governmental policy, industry demands, and the aspirations of a new generation of Indian graduates.

The Mandate and the Mismatch: Understanding the Indian Internship Crisis

The Indian government’s National Education Policy (NEP) 2020, unveiled with much fanfare, represented a paradigm shift in the nation’s approach to education. A cornerstone of this policy was the integration of practical learning experiences, recognizing that theoretical knowledge alone is insufficient for career readiness in an increasingly competitive global landscape. The stipulation that internships are mandatory for all undergraduates, carrying significant academic credit, was a bold move to foster a more employable workforce. This policy aims to ensure that graduates not only possess academic qualifications but also have tangible experience to showcase to potential employers. The intention is to cultivate a generation of professionals who are better prepared, more adaptable, and possess a foundational understanding of real-world work environments.

However, the reality on the ground has presented a more complex picture. While the policy sets a clear direction, the infrastructure and willingness within certain sectors, particularly the IT industry, have not kept pace. The IT sector in India, a powerhouse of economic growth and employment, is characterized by rapid technological advancements and a constant demand for skilled professionals. Yet, it often operates with lean teams and project-based workforces. Offering internships, especially to individuals with nascent skill sets, requires significant investment in training, mentorship, and supervision. For many companies, especially small and medium-sized enterprises (SMEs), this investment can be a substantial burden, diverting resources from core business operations. Furthermore, the IT industry often seeks interns who can contribute meaningfully from the outset, which can be challenging for students still mastering foundational programming languages, software development methodologies, or specific domain knowledge. This mismatch between the policy’s universal application and the industry’s specific needs creates a significant gap, leaving many students struggling to find suitable internship opportunities that align with their academic requirements and career aspirations.

SETTribe’s Strategic Positioning: Bridging the Skills Gap

In this challenging yet opportunity-rich environment, SETTribe has strategically positioned itself as a vital intermediary, aiming to bridge the gap between academic mandates and industry realities. Sarang Wakodikar explains the company’s core mission: "With the launch of the Indian government’s new education policy, internships have become mandatory for all graduates entering the job market. Students can earn 10 to 15 academic credits through these internships. However, there are very few companies—particularly in the IT sector—that are willing to offer internships to fresh graduates whose foundational skills are still developing." This statement encapsulates the problem SETTribe seeks to solve.

SETTribe’s market definition is therefore centered around this critical need for structured, supportive, and mutually beneficial internship experiences. The company doesn’t just aim to connect students with companies; it endeavors to create a robust ecosystem that facilitates skill development, practical application, and meaningful career entry. This involves several key strategic elements:

• Curated Internship Opportunities: SETTribe actively identifies and partners with companies that are willing and able to offer internships, focusing on those that can provide valuable learning experiences. This involves a vetting process to ensure the quality of internships offered.
• Skill Enhancement Programs: Recognizing that many fresh graduates lack the specific foundational skills required by industry, SETTribe likely offers or facilitates pre-internship training and skill-building workshops. This ensures that students are better prepared to contribute and learn effectively during their internships.
• Mentorship and Support: A crucial element of SETTribe’s offering is likely the provision of mentorship, both from academic institutions and industry professionals. This support system helps students navigate challenges, receive guidance, and maximize their learning during the internship period.
• Bridging the Credit Gap: By facilitating these structured internships, SETTribe directly addresses the academic credit requirement stipulated by the NEP 2020, ensuring that students can fulfill their educational obligations.
• Industry-Specific Focus: The explicit mention of the IT sector highlights SETTribe’s understanding of the unique challenges and opportunities within this domain. This suggests a specialized approach to curriculum development, industry partnerships, and skill matching within the IT sphere.

The company’s fit within this space is as an enabler and facilitator. It acts as a crucial link, transforming a policy mandate into a tangible opportunity for both students and companies. By de-risking the internship process for companies and enhancing the employability of students, SETTribe plays a pivotal role in the successful implementation of the NEP 2020.

Background Context: The Evolution of Indian Higher Education and the NEP 2020

The NEP 2020 is not an isolated policy; it represents a culmination of decades of discussion and reform efforts aimed at modernizing India’s education system. Historically, Indian higher education has been criticized for its rote learning approach, theoretical emphasis, and a disconnect from the practical demands of the job market. This has often resulted in a large number of graduates with degrees but lacking the skills employers seek, leading to underemployment and unemployment.

Key previous attempts at reform, such as the National Knowledge Commission (2006-2009), highlighted the need for greater emphasis on research, innovation, and the integration of vocational and skill-based education. The challenges identified in these earlier initiatives paved the way for a more comprehensive and integrated policy like NEP 2020.

Timeline of Key Developments:

• Early 2000s: Growing awareness and academic discourse around the need for higher education reform, focusing on quality, access, and relevance.
• 2006-2009: Formation of the National Knowledge Commission, advocating for significant changes in the education system.
• 2016-2019: Extensive consultations, committee formations, and drafting processes leading to the final NEP 2020 document.
• July 2020: The Union Cabinet approves the National Education Policy 2020.
• 2021-Present: Phased implementation of NEP 2020 across various educational levels, with a particular focus on higher education reforms including the mandatory internship component.

The inclusion of mandatory internships in NEP 2020 is a direct response to the persistent problem of graduate employability. It signals a commitment from the government to move beyond traditional academic metrics and embrace a more holistic approach to education that prioritizes practical skills and real-world experience. This policy is designed to foster a culture of lifelong learning and adaptability, essential for navigating the rapidly changing global economy.

Supporting Data and Industry Trends

The Indian IT sector is a behemoth, contributing significantly to the nation’s GDP and employment. As of recent estimates, the IT-BPM (Business Process Management) industry employs over 4.5 million people and is projected to grow substantially. This growth, however, is increasingly reliant on a skilled workforce capable of handling advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), data analytics, cloud computing, and cybersecurity.

• Skills Gap Data: Various industry reports consistently highlight a significant skills gap in India. For instance, reports from NASSCOM (National Association of Software and Services Companies) often point to a gap between the skills possessed by fresh graduates and the skills demanded by the IT industry. A significant percentage of graduates are deemed "unemployable" by industry standards without further training.
• Internship Demand: While companies are hesitant to offer extensive training to interns, there is a growing demand for interns who can contribute to specific projects. This demand is often met by larger IT firms and established product-based companies that have dedicated internship programs. However, the sheer volume of graduates mandated to undertake internships far outstrips the capacity of these organizations.
• Growth in EdTech and Skilling Platforms: The challenges in the internship market have fueled the growth of the EdTech sector in India. Platforms offering specialized courses, bootcamps, and skill development programs are witnessing increased adoption as students and institutions seek ways to enhance employability. SETTribe operates within this broader trend, focusing on the critical juncture of internship acquisition and preparation.
• Government Initiatives: Beyond NEP 2020, the Indian government has launched various initiatives like Skill India and Digital India, aiming to upskill the workforce. NEP 2020’s internship mandate complements these efforts by ensuring that practical exposure is an integral part of the educational journey.

The data underscores the criticality of SETTribe’s mission. The gap is not just theoretical; it is quantifiable in terms of the number of graduates needing internships and the limited number of companies equipped to provide them effectively.

Broader Impact and Implications

The successful implementation of mandatory internships, facilitated by organizations like SETTribe, has profound implications for India’s educational landscape, its economy, and its global competitiveness.

• Enhanced Employability: The most direct impact is on the employability of graduates. By gaining practical experience, students develop crucial soft skills, industry-specific knowledge, and a professional network, making them more attractive to employers. This reduces the period of unemployment or underemployment post-graduation.
• Economic Growth: A more skilled and readily employable workforce is a key driver of economic growth. Companies can hire talent faster, leading to increased productivity and innovation. The IT sector, in particular, can benefit from a steady pipeline of well-trained professionals, enabling it to maintain its competitive edge globally.
• Reduced Brain Drain: When Indian graduates find meaningful opportunities within the country, the phenomenon of "brain drain" – the emigration of skilled professionals – can be mitigated. This ensures that India retains its talent pool and benefits from their contributions.
• Reform of Educational Institutions: The NEP 2020, with its internship mandate, is forcing educational institutions to rethink their curricula and engage more closely with industry. This leads to a more dynamic and relevant higher education system.
• Challenges for Companies: While beneficial overall, the policy also presents challenges for companies, especially SMEs. They may need to adapt their operational models to accommodate interns, invest in training infrastructure, and develop effective mentorship programs. Government incentives or support mechanisms could be crucial in easing this transition.
• The Role of Intermediaries: The emergence of companies like SETTribe highlights the critical role of intermediaries in navigating complex policy environments and market dynamics. These organizations can streamline processes, build bridges, and create value for all stakeholders involved. Their success is indicative of a systemic need for specialized solutions in the education and employment sectors.

In conclusion, SETTribe, under the leadership of Sarang Wakodikar, is strategically positioned to address a critical challenge born from a forward-thinking government policy. By focusing on bridging the skills gap and facilitating meaningful internship experiences, particularly within the demanding IT sector, the company is not merely a service provider but a vital enabler of India’s evolving educational and economic future. The success of such initiatives will be instrumental in realizing the full potential of the NEP 2020 and ensuring that a new generation of Indian graduates is well-equipped to meet the demands of the 21st-century workforce.