New Delhi, Sept. 27 -- India's entry-level hiring market is developing an unusual contradiction. Employers increasingly want proof of what freshers can actually do rather than relying primarily on what their degrees say they have learned. Yet the degree itself continues to influence who gets an opportunity to demonstrate those skills.

That tension runs through Gi Group Holding's From Degrees to Capability: Redefining India's Entry-Level Talent Landscape, based on responses from 1,329 participants, including 750 employers and 579 candidates and early-career professionals across 12 sectors and eight major Indian cities.

The numbers point to a hiring funnel under pressure. Nearly two-thirds of employers - 64% - say fewer than 40% of entry-...