How can service sector reduce educated unemployment in india

There are lot of factors which i can think of for the rising unemployment. 
1. SkillSet :  I know there are lot of educated people who are facing difficulty in getting jobs. Its like, we do engineering and expect the employers to give us job. The employers need people with skills and work experience in that particular domain which our degrees don't provide us. So,  studies needs to be more practical and industry oriented so that students get the industry exposure while they are studying. 
2. Population  : India is a huge country with over 1.2 billion people.The population needs to be controlled. Its difficult for a developing country like India to provide work to over 1.2 billion people. China has a bigger population with a comparatively low unemployment rate of nearly 4.5% in urban areas( as per world bank data) the main reason bring its a country controlled by government so they can change the policies as per their whim. (like read china's one child policy, forced labor, labor rights )
3. We need to have a education system which focuses on entrepreneurship so that we are able to create more jobs. 
4. We don't take risks or follow our dream and always follow paths which we know has been successful. Like in the 90's people started becoming engineers, others came to know that being a engineer will fetch a well paid job. So, each and everyone started doing the same thing and following the same path. And now there are more engineers than there are jobs available for that position. I personally know some people who being a engineer in Software, Electronics work as a clerk. Also, there are people who are searching for a job for like 2+ years. In Bangalore, you can get people(fresh grads) who are ready to work for you for like 100$(6000 rs)/month. I just think we should have a education system which helps a person understand his inner talent and takes him in that direction.  
5. Large Expectations : We always have large expectations, most of us deny to do low paid jobs. 
6. Reservation