Abstract
<title>Abstract</title> <p>Higher education institutions (HEIs) in emerging economies face a persistent paradox: while graduate enrolment continues to expand, many graduates remain inadequately prepared for professional practice. Addressing this challenge, this study develops and validates the Gurukul 2.0 Model, an integrated capability-based framework grounded in the Capability Approach, Self-Determination Theory, Experiential Learning Theory, and the Indian Guru–Shishya tradition of holistic mentoring. The model proposes that Guru–Shishya Mentoring Quality, AI-Augmented Personalized Learning, and Character Formation (Samskara-Oriented Learning) enhance Learning Capability Development, which subsequently promotes T-Shaped Professional Competence, with Student Learning Readiness acting as a moderator. Data were collected through a cross-sectional survey of 378 students from engineering, management, science, commerce, and arts programmes in Indian HEIs. The measurement model was validated using exploratory and confirmatory factor analyses, while the structural relationships were examined using covariance-based structural equation modelling (CB-SEM) in AMOS. Results supported all hypothesized direct relationships, confirmed the full mediating role of Learning Capability Development, and demonstrated a significant moderating effect of Student Learning Readiness. The model exhibited satisfactory reliability, convergent and discriminant validity, and good fit indices (CFI = .944, TLI = .940, RMSEA = .040). The findings advance capability and mentoring research by demonstrating that indigenous pedagogical practices and AI-enabled personalized learning can complement one another in fostering graduate competence. The study offers a validated measurement framework and practical guidance for curriculum design and holistic capability development in higher education.</p>