India’s manufacturing-led growth story is entering a more structured expansion phase, with employers across the engineering and infrastructure ecosystem signalling stronger hiring intent, rising digital adoption, and sustained investment-driven demand, according to a new industry assessment. The outlook reflects improving confidence across core industrial segments as long-term policy support begins to translate into workforce growth.
In its latest report, TeamLease Services said the Manufacturing, Engineering and Infrastructure (MEI) sector is witnessing a clear shift from cyclical recovery to steady expansion. It noted that 70 per cent of employers are planning to increase headcount, while net employment growth is expected to rise to 6.6 per cent in the first half of FY2026–27, compared with 5.5 per cent in the previous half-year.
The report said this improvement places the sector among the top three industries in terms of hiring intent, underlining a broader transition towards sustained industrial scaling. It added that the momentum is being supported by a combination of policy measures and capital expenditure cycles across manufacturing and infrastructure.
It further highlighted that government initiatives such as the National Manufacturing Mission, production-linked incentive schemes, clean technology manufacturing programmes, and semiconductor development efforts are acting as key enablers of job creation. According to the report, semiconductor investments in Gujarat, Tamil Nadu, and Karnataka alone could generate close to one million jobs between 2026 and 2028 across fabrication, assembly, chip design, and supply chain operations.
The assessment said the increasing adoption of Industry 4.0 technologies is reshaping workforce requirements, with greater demand for specialised technical and digital capabilities. Roles in automation engineering, plant operations, project management, and advanced manufacturing systems are seeing stronger hiring traction as companies modernise production processes.
Engineering employment remains steady, with 33 per cent of firms planning expansion and 46 per cent maintaining existing workforce levels, indicating continued confidence in core industrial activity. Growth is particularly visible in electric vehicles, renewable energy, and advanced manufacturing segments.
At the regional level, Chennai, Pune, and Bengaluru are emerging as key hiring hubs, while Tamil Nadu, Maharashtra, and Gujarat continue to dominate job creation. The report also pointed to an expected average salary growth of 9.4 per cent in FY2026–27, alongside rising workforce restructuring and increased digitalisation of HR systems, reflecting a shift towards more efficient and technology-driven workforce management across the sector. |
