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Amid an increasingly competitive job market in India, driven by layoffs, limited skill development and a rising population, Coursera’s Micro-Credentials Impact Report 2025 has found that ‘skills-based hiring’ is gaining traction across the country. According to the report, 99% of Indian employers have either already adopted or are exploring this hiring approach in response to an ongoing talent shortage. The report also finds that ‘micro-credentials’ are becoming a key enabler of skills-based hiring.
In particular, 95% of Indian employers say they are more likely to hire candidates with a generative AI (GenAI) micro-credential, believing it helps reduce onboarding time and improve productivity. Coursera compiled its findings after gathering insights from over 2,000 employers and students in India and around the world. Why the Demand for Micro-Credentials? Micro-credentials, or micro-degrees, refer to short-term courses offered by universities or colleges that can be completed in a short span of time, either online, in person, or through hybrid formats.
These programmes offer beginner, intermediate and advanced-level training in specific skills sought by students and working professionals. Coursera reports that most Indian employers believe micro-credentials reduce both onboarding time and hiring costs. In fact, 97% of employers are willing to offer higher starting salaries to candidates who hold micro-credentials.
Many companies also reported saving as much as 20% on first-year training costs. Also read: Govt working on modernising education system to meet 21st century needs, says PM Modi Indian employers are increasingly using micro-credentials for both hiring and workforce development. A majority said micro-credentials enhance a candidate’s profile and make them job-ready.
Additionally, 97% are open to training their current employees using such programmes, and 93% prefer hiring candidates with credit-bearing credentials over those without them. Prashasti Rastogi, Director of Coursera for Campus and Government, India, said, “With fast-changing roles and rising demands, Indian employers want graduates to be job-ready from day one. Micro-credentials have emerged as one of the most effective and trusted solutions — equipping students with practical skills and offering verifiable proof of their capabilities.
With India advancing the National Education Policy, these insights highlight the urgency of integrating micro-credentials into higher education to equip students with the skills employers value most in the modern workplace.” Generative AI Shaping Hiring Trends? The report finds GenAI skills are quickly becoming a top priority for Indian employers. Around 79% say they would prefer a less experienced candidate with a GenAI credential over a more experienced one without it.
Furthermore, 93% want universities to equip graduates with GenAI skills suitable for entry-level roles, and 95% believe GenAI can give their organisation a strategic edge. It is not only employers who are turning to micro-credentials. The report shows that 86% of students believe earning a micro-credential will improve their chances of success in the workplace, and one in three Indian students has already earned one.
The likelihood of enrolling in a degree programme increases from 38% when no micro-credential is offered to 91% when it is. This figure rises even higher when the micro-credential is credit-bearing or teaches GenAI-related skills. The growing demand for micro-credentials could help narrow the gap between theoretical learning and practical, skill-based employment in fields like engineering.
The Indian government has also been promoting a ‘Skilled India’ initiative. Just last month, the Ministry of Skill Development and Entrepreneurship partnered with the World Economic Forum to launch the ‘India Skills Accelerator’ to improve job readiness among the country’s youth. Also read: Planning for your child's education abroad: This expert shares 5 financial tips.
