PurposeParticipation of women in engineering education is considerably low in India, although it is increasing in recent years. Also, engineering is primarily treated as a male-dominated profession, and the authors do not find many women in this sector. What factors contribute to this significant gender differences in engineering education and labour market in India? In this context, this study aims to examine the factors that explain the gender variations in academic performance and labour market outcomes (placement and earnings) of engineering graduates in India.Design/methodology/approachThe paper is based on primary survey data from fourth-year engineering students in Delhi, collected in 2018–2019, with a total sample size of 3186. The study uses Ordinary least square method (OLS) and Heckman selection model to analyse gender differences in academic performance and labour market outcomes of engineering graduates, respectively.FindingsThe study finds that academic performance of male students is around 10.4% more than female students. However, this difference is heavily influenced by various socioeconomic and institutional factors. Interestingly, 3% of female engineering graduates have received more job offers than males, which contradicts the common belief that women engineers face job discrimination in the labour market in India. However, the authors find that male engineers earn around 7% more than female engineers shows the evidence of pro-male gender wage inequality in earnings. The findings support that there is a considerable variation in academic performance and earnings between male and female engineering graduates.Originality/valueWhile the authors find some literature in the area of gender difference in the academic performance and labour market among university graduates in India, studies in the field of engineering education are sparse. In a context where fewer women are found in the field of engineering education along with low participation in the labour market, the findings of this study significantly contribute to the policy making.