The Indian engineering and IT sectors have experienced notable fluctuations in hiring trends during the financial year 2024-2025. The primary reason for the same has been global economic conditions, technological advancements, and strategic governmental initiatives.
Hiring Trends and Statistics
In 2024, the Indian IT sector witnessed a 7% decline in hiring activity compared to the previous year. The primary reason for the same has been global economic uncertainties and geopolitical tensions, which has led to cautious recruitment strategies across the industry.
Despite this overall decline, Global Capability Centres (GCCs) demonstrated resilience by contributing to over 50% of tech job openings during this period. Their sustained hiring efforts provided a buffer against the broader contraction in IT services recruitment.
Anticipated Rebound and Growth Areas
Looking ahead, the IT sector is set for a significant rebound in 2025, with projections indicating an 8.5% growth in the job market. This resurgence will be driven by increased investments in emerging technologies such as Artificial Intelligence (AI), cloud computing, and machine learning.
The demand for professionals skilled in these areas is on the rise, with starting salaries for roles like data scientists ranging from ₹9.6 to ₹13.6 lakh per annum (LPA). Additionally, penetration testers in GCCs can expect compensation up to ₹11.8 LPA, reflecting the premium placed on specialized expertise.
TCS, Infosys, Wipro, Tech Mahindra, and HCL Technologies were among the top recruiters, focusing on AI, cloud computing, and cybersecurity roles.
Government Initiatives and Sectoral Impact
The Indian government’s approval of a ₹229.19 billion ($2.68 billion) production-linked incentive (PLI) scheme in March 2025 aims to bolster electronics manufacturing. This initiative is going to attract $7 billion in investments and create approximately 91,000 direct jobs over the next five years, thereby enhancing employment opportunities within the engineering sector.
Emerging Skills and Workforce Dynamics
The rise of AI-driven roles has resulted in salary hikes of 35-55% for specialized professionals. As AI continues to reshape the industry, there is a growing emphasis on upskilling the workforce. Specialized AI roles are commanding higher salaries. Along with this, increasing demand for expertise in cybersecurity, blockchain, DevOps, edge computing, augmented reality (AR), and quantum computing. The expansion of GCCs in tier-2 and tier-3 cities is also broadening opportunities for entry-level engineers.
Conclusion
The financial year 2024-2025 has been a period of transformation for India’s engineering and IT sectors. While challenges persisted due to global economic factors, strategic initiatives and a focus on emerging technologies have set the stage for a robust recovery. Professionals equipped with skills in AI, data science, and related fields are well-positioned to capitalize on the evolving opportunities in this dynamic landscape.
References:
- https://economictimes.indiatimes.com/jobs/hr-policies-trends/indian-it-hiring-2025-promises-rebound-ai/data-science-roles-to-dominate-job-market/articleshow/116619527.cms
- https://www.ft.com/content/def3e2bf-d2a6-44be-9876-4d71f0f0326c
- https://www.reuters.com/world/india/indian-cabinet-approves-27-billion-plan-boost-electronics-components-2025-03-28.
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