Expectations of the corporate world are ever increasing from engineering graduates. In India students’ enrolment for engineering course is increasing along with increasing trend of engineering institutes. But various studies have proved that there is a skill gap among the students. Corporate expectation are not fulfilling from the fresh engineering graduates. As a results companies have strengthens their criteria of selection of engineering graduates. Various new criteria like, no gaps in the education, no ATKT, Continues passing and 60 % throughout the qualification are the major eligible criteria which are fixed by domestics as well as multinational companies. These criteria have created obstacles for both the companies and students also. Awareness among the engineering institutes and students about these criteria is very essential. Both institutes and students need to understand the market requirement and they should update themselves. In this context, this article will explore the important criteria of the companies adopted for the selection of the fresh engineering graduates and obstacles faced by students as well as by the companies during the selection procedure