Technical education contributes a major share to the overall education system and plays a vital role in the social and economic development of our nation. Since independence, the technical education system in our country has grown into a fairly large-sized system, offering opportunities for education and training in a wide variety of trades and disciplines at the certificate, diploma, degree, postgraduate degree and doctoral levels in institutions located throughout the country. India is renowned for producing graduates of the highest calibre, but only very few compared with its population receive high-quality technical education. India has over the years significantly bolstered the quality and availability of technical education, doubling the employment rate of graduates who are now better suited to the needs of the Indian industry. The challenges posed by this rapidly growing technical education system in our country are extremely complex in nature, with the employability of fresh engineering graduates getting multiplied to be a major hurdle. The issues and challenges faced by the technical education sector and its future prospects are discussed in this article taking the scenario prevailing in the state of Kerala as an example. A detailed picture is depicted in this article by portraying the availability of seats and institutes in technical education in Kerala. Issues faced and possible solutions are also highlighted.