In a significant move to address the oversupply of Computer Science Engineering (CSE) graduates and align engineering education with industry needs, an expert committee in Karnataka has recommended a 17% reduction in CSE seats across the state's engineering colleges starting from the 2026-27 academic year. This proposal comes amid concerns over thousands of vacant seats and rising unemployment among engineering graduates, prompting the state government to rethink its approach to technical education.

The recommendation highlights a growing mismatch between the rapid expansion of CSE programs and the actual job market demands. With Karnataka boasting over 229 engineering colleges offering approximately 1.53 lakh undergraduate seats, nearly 1 lakh—or about 64%—are dedicated to CSE and related branches like Artificial Intelligence (AI), Machine Learning (ML), and Data Science. Last academic year alone, more than 9,000 CSE seats remained unfilled, underscoring the saturation in this field.

Background: The Surge in CSE Seats and Emerging Challenges

The proliferation of CSE seats in Karnataka can be traced back to the All India Council for Technical Education (AICTE) relaxing norms, allowing one computer per 10 students instead of four. This led to unchecked growth, with private colleges and universities aggressively adding CS-related courses to attract students drawn by high salary promises in IT hubs like Bengaluru. However, global tech layoffs—such as those at Tata Consultancy Services (TCS) planning a 2% workforce reduction by 2026—and the rise of AI automating entry-level jobs have flipped the script.

Engineering admissions have plummeted, with core branches like Mechanical, Civil, and Electrical seeing even steeper declines. Reports indicate that only around 17% of engineering graduates secure jobs immediately, forcing nearly 48,000 to register for the state's Yuva Nidhi unemployment allowance scheme. The expert committee's report paints a stark picture: an industry unprepared for the flood of graduates lacking practical skills in emerging technologies.

Formation of the Expert Committee

In February 2026, the Karnataka Higher Education Department constituted the committee to diagnose the crisis and propose reforms. Headed by Prof. S. Sadagopan, former Director of the International Institute of Information Technology Bangalore (IIIT-B), it includes eminent IISc professors like Jagadish and S. Gopalakrishnan. Their mandate was to analyze vacant seats, employability rates, and suggest measures to revive engineering education, particularly in Computer Science.

The panel's recent report, submitted to the department, has sparked discussions on balancing quantity with quality. Prof. Sadagopan emphasized that while capping seats is necessary, it must be paired with curriculum upgrades to prevent brain drain, where talented students might opt for opportunities abroad or non-engineering fields.

Key Recommendations: Caps, Redistribution, and Quality Controls

The committee's blueprint is comprehensive. Central to it is a 17% phased reduction in CSE seats from 2026-27, with freed-up slots redirected to 'Core+AI' branches—traditional disciplines like Mechanical or Electrical augmented with AI/ML modules. Institutions face a hard cap of 900 seats across all CSE-related courses, limited to no more than five such programs per college.

• New institutions start with 60 seats per course.
• Expansion beyond 300 seats requires National Board of Accreditation (NBA) certification within two years.
• Vacancy rates over 40% for two years trigger automatic intake cuts.

A novel 'zero-sum' principle ensures total seats remain fixed: reductions in oversupplied branches fund growth in high-demand ones. An annual nine-step rebalancing formula will use market demand, placement data, and vacancy trends to shuffle allocations dynamically. The 2026-27 year serves as a 'hold' period for data collection before full implementation in 2027-28.

Curriculum Overhaul: Introducing Core+AI and Hands-On Learning

Beyond caps, the panel pushes for a Core+AI framework, embedding AI/ML as an analytical layer atop core engineering subjects, with Mathematics as the foundation. Every stream would incorporate mandatory project-based learning and 'test-to-failure' labs each semester, fostering innovation, ethics, and real-world problem-solving.

Faculty training is key, alongside Karnataka Examinations Authority (KEA) oversight for KCET-aligned reforms. The goal: scale industry-ready graduates from 22,000 to over 75,000 annually by 2030. This addresses criticisms of outdated curricula unable to keep pace with AI-driven job shifts.

Photo by Jayanth Muppaneni on Unsplash

Stakeholder Perspectives: Mixed Reactions from Colleges, Students, and Industry

College associations like Karnataka Unaided Private Engineering Colleges' Association (KUPECA) support skilling in emerging tech but worry about sudden cuts hurting revenues. MP Shyam from KUPECA advocates government-industry tie-ups for relevant training. Students fear limited options, potentially pushing them to costlier private universities exempt from caps.

Industry voices, including Bengaluru's IT leaders, back the move, citing a need for multidisciplinary talent. Prof. Sadagopan cautions: "Capping CS seats may trigger brain drain" unless paired with core reforms. The government, led by Minister M.C. Sudhakar, plans regulations for KCET 2026 implementation, drawing from Telangana's successful model.

Government Response and Implementation Timeline

Higher Education Minister M.C. Sudhakar has indicated swift action, with regulations expected before KCET 2026 counselling. The department will review the report, potentially incorporating judicial precedents upholding state rights to regulate intake. A 'hold year' in 2026-27 allows baseline data collection, with rebalancing from 2027-28.

This aligns with national NEP 2020 goals for flexible, demand-driven education, positioning Karnataka as a leader in quality-focused reforms.

Comparisons with Other States: Lessons from Telangana

Telangana pioneered intake caps after similar oversupply, upheld by courts. Karnataka draws inspiration, adapting to local IT dominance. Unlike Andhra Pradesh's branch closures, Karnataka favors redistribution, preserving capacity while realigning.

Implications for Students, Colleges, and the Job Market

For students, fewer CSE seats mean fiercer competition via KCET ranks, but opportunities in Core+AI could open versatile careers. Colleges must diversify or risk viability, investing in accreditation and faculty upskilling. Bengaluru's IT ecosystem stands to gain skilled, multidisciplinary talent amid AI boom.

Unemployment may ease long-term, but short-term pain includes migration to other states or upskilling programs. With 48,000 engineers on Yuva Nidhi, reforms can't come soon enough.

Job Market Trends: IT Layoffs to AI Opportunities

India's IT sector faces headwinds: 2 lakh layoffs in 2025, AI displacing routine coding. Yet, demand surges for AI specialists—NASSCOM projects 1 million jobs by 2026. Karnataka's reforms aim to bridge this by producing hybrid engineers proficient in core domains plus AI.

Photo by Nikhita S on Unsplash

• Current: CSE grads flood market, 80% entry-level unplaced.
• Future: Core+AI grads target high-value roles in EVs, robotics, semiconductors.

Future Outlook: Towards Sustainable Engineering Education

If implemented, Karnataka could pioneer demand-aligned education, boosting employability to 50%+ in five years. Challenges remain: resistance from private colleges, student pushback, execution via KEA. Success hinges on industry partnerships, robust accreditation, and continuous monitoring.

Prospective students should eye Core+AI branches, upskill via certifications, and track KCET changes. For colleges, it's a call to innovate or consolidate. This pivotal shift promises a more resilient engineering ecosystem for India's Silicon Valley.