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The best talent pool of engineers is in Delhi, Bihar and Jharkhand, while those from Andhra Pradesh and Tamil Nadu are least employable, said a report.
Employability for IT product roles in Delhi is as high 13 per cent and as low as 1 per cent in Chennai, says the National Employability Report of Engineering Graduates, 2014 by Aspiring Minds.
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Bangalore with 3.7 per cent employability emerges as the best amongst Southern and Western cities in the IT product sector, it added.
Tier III cities cannot be neglected from recruitment perspective as at least one out of every six engineering colleges is in a tier III city, the study said.
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Around 12 per cent of engineers employable in IT services are in tier III cities, an absolute number of about 13,000.
"Our National Employability Report in its latest edition goes deep in to the employability of engineering graduates, their capability, qualifications and aspirations," Aspiring Minds CEO Himanshu Aggarwal said.
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Looking at state-wise distribution of employable talent, Aggarwal said while certain states produce huge number of engineers, the average employability in significantly low.
"It is clear that that states need to be conscious towards better education quality rather than building more capacity," he said.
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The mushrooming growth in terms of number of engineering colleges in the country has been alarming and has come out as the major reason for low employability of engineers.
The report was based on the graduate class of 2013 and covers data of more than 1,20,000 engineering students from more than 520 engineering colleges, across 18 Indian states.