Karnatak University, located in Dharwad, India, is facing a notable decline in postgraduate enrolment, attributed to rising competition from new universities and local colleges, alongside a severe faculty shortage. Enrolment figures dropped from 3,623 in 2023-24 to 3,334 in 2024-25 and further to 3,058 in 2025-26, leaving many departments with nearly half their seats vacant. Courses like Sanskrit and foreign languages are particularly affected, while high-demand programs such as MBA and Mathematics continue to fill seats. Faculty members report that the university's traditional catchment area has diminished, as students now prefer institutions closer to home. With 70% of faculty positions vacant, academic quality has suffered, further diminishing the university's attractiveness. In contrast, affiliated colleges have seen an increase in PG admissions, rising from 3,768 in 2023-24 to 4,609 in 2025-26, indicating a shift towards decentralised higher education. To combat this trend, the university plans to introduce industry-oriented training and integrate artificial intelligence into its curricula, aiming to enhance student appeal and improve enrolment figures by the 2026-27 academic year.