University Township: A new paradigm for integrated higher education- employability-enterprise ecosystem
One of the bold moves in Budget 2026–27 has been the proposal to set up five University Townships across India. This marks a departure from the traditional approach of establishing new institutes, expanding intake in existing universities, or creating education parks to cater to the ever-expanding needs of a young population. Earlier approaches largely focused on increasing academic capacity and producing educated professionals, often misaligned with the specific requirements of industry. Though some academic institutions have collaborated with industry to create Centres of Excellence in niche domains, the majority of industry players have not been equally forthcoming. Internships are frequently viewed either as obligatory CSR activities or as sources of free supplementary labour rather than as structured mentoring opportunities to build a skilled workforce.
The lack of mentoring stems from several factors: the investment required for skill-based training, obsolete syllabi in many institutions that make it difficult for students to appreciate modern tools and techniques, low commitment among graduates to remain long with one employer, and the prevailing belief that producing a skilled workforce is primarily the responsibility of academia. However, the objective of academia is to provide conceptual grounding, stimulate curiosity, inculcate an entrepreneurial mindset, and equip learners with analytical tools to address real-world challenges. Real-life exposure, which helps learners understand industry problems and develop higher-order skills, can only be effectively provided by industry.
The development of a complete ecosystem, as envisaged in the current budget, combining multidisciplinary education with continuous industry exposure throughout a student’s academic journey, could offer a viable solution. Such an approach would create a job-ready workforce that industry increasingly seeks. However, the success of this endeavour depends on bringing the major stakeholders—industry, academia, and learners—on board. Since the proposed university townships are expected to be located near industrial hubs and corridors, organisations in these regions are presumed to work closely with academic institutions to produce employment-ready graduates. Yet several questions remain. Which industries will participate in this ecosystem? Will the government establish clear guidelines for industry engagement in skilling initiatives? How many firms will be willing to commit resources, and will they recruit primarily from these hubs or continue scouting talent elsewhere? If they continue to recruit externally, how will they justify investing in training students within the hub, and will such activities merely remain part of CSR outreach? Given the limited current CSR engagement in workforce skilling, relying on CSR alone is unlikely to deliver results. Industries will need to invest significantly and evaluate the return on investment while participating. Equally important is whether industry will be open to collaborating with academia to explore innovative solutions for emerging challenges in an increasingly volatile and uncertain world—an openness that is presently limited.
Academia, for its part, has recognised the need to keep pace with the rapidly evolving industrial ecosystem, especially in the era of Industry 5.0. Support from industry should extend beyond student training to include faculty exposure, access to advanced laboratories, and modern software systems. Academic institutions should encourage faculty participation in industry through short-term training programmes, collaborative research, and consultancy assignments. Such engagements can generate research findings that are directly applicable to industry rather than remaining confined to publications. Curricula should also incorporate live industry projects across courses, with student performance evaluated jointly by academic faculty and industry mentors.
Learners, the third stakeholder, must also play their role. Students seeking suitable employment should approach internships sincerely, aiming to build expertise in a focused domain rather than frequently changing roles. A focused approach will help them evolve into highly skilled professionals sought after by specific industries, while also encouraging organisations to invest in their long-term development. Educational institutions and families should reinforce the understanding thatcareer growth is a long-term journey, not a short sprint.
While the government has initiated the creation of an integrated economic-academic ecosystem, it must ensure participation from industries across the spectrum, including traditional manufacturing and engineering firms, and formulate clear policies defining stakeholder roles. Ultimately, the success of this initiative depends on the committed participation of all stakeholders in achieving the shared vision of a Viksit Bharat.
(The author is Deputy Director & Dean Academics, Birla Institute of Management Technology (BIMTECH))
