The rapid expansion of higher education in India was expected to translate into improved employment outcomes and social mobility; however, recent trends reveal a growing crisis of educated unemployment. This study examines the extent, patterns, and structural dimensions of unemployment among highly educated individuals in India through a comparative and spatial analysis. Using secondary data from the World Bank and the Periodic Labour Force Survey (PLFS) 2022–23, the study compares India’s educated unemployment with selected G20 countries and analyses State and Union Territory–wise variations across different educational levels. The findings show that India consistently records the highest unemployment rates among highly educated individuals within the G20 group, despite marginal improvement in recent years. At the sub-national level, unemployment is disproportionately concentrated among persons with secondary and higher education, while remaining negligible among the less educated, indicating an inverse relationship between education and employment outcomes. States and Union Territories with higher educational attainment often exhibit severe educated unemployment, reflecting skill mismatch, jobless growth, weak industry–academia linkages, and limited labour market absorption. The study concludes that educated unemployment in India is a structural developmental challenge that threatens to undermine the country’s demographic dividend unless education systems and employment strategies are realigned.