The Indian job market is navigating a complex landscape, prompting professionals to question whether hiring is slowing down or if they are simply in the wrong sector. Ankit Agarwala, Managing Director at Michael Page India, asserts that while the job market is “active but uneven,” it has become increasingly selective and demanding in terms of skill sets. The hiring boom of 2021–22 focused on volume, but the current phase emphasizes precision.
Companies are now hiring fewer individuals but are placing greater emphasis on the specific capabilities these candidates bring. This shift is reshaping salaries, career trajectories, and job security, as organizations adjust their expectations for employee tenure in a role. Agarwala notes that India is not experiencing a hiring freeze; rather, it is undergoing a filtering process that distinguishes sectors facing sustained momentum from those that are not.
Sectors aligned with long-term national and global objectives—such as manufacturing, automotive, renewables, and supply chain—are demonstrating growth driven by increased domestic production, electric mobility, and clean energy targets. These areas are less susceptible to short-term economic fluctuations. Meanwhile, the rise of Global Capability Centers (GCCs) marks another significant trend. Expanding beyond Bengaluru into cities like Hyderabad, Pune, and the National Capital Region (NCR), GCCs are generating high-value roles in fields like artificial intelligence, product engineering, and data analytics. Currently, over 1,600 GCCs in India employ more than 1.6 million professionals, a number projected to grow sharply in the coming years.
Traditional sectors such as consumer goods, healthcare, and IT services are still hiring, but they are exercising increased selectivity, focusing on specialized, revenue-impacting roles instead of large-scale team expansions. Following two years of aggressive salary hikes, there has been a noticeable cooling in salary growth. Agarwala comments that “average increments are lower than the past two years,” as companies grapple with cost pressures and global uncertainties. However, this moderation varies significantly; high-demand skill sets in automation, environmental, social, and governance (ESG) criteria, data analytics, and cybersecurity continue to command premium salaries, while more generic roles see slower growth.
The philosophy behind compensation is shifting towards skills-based pay, placing a greater responsibility on individuals to remain relevant in their fields. As concerns about artificial intelligence (AI) loom, Agarwala reassures that while certain roles—particularly those involving routine tasks—are at risk, growth is accelerating in areas like AI and machine learning, data engineering, automation, and ESG reporting. The demand is increasingly for hybrid profiles that combine domain expertise with digital skills, emphasizing professionals who can convert technology into business value.
Historically, India was viewed as the world’s support system; however, that narrative is rapidly changing. Agarwala emphasizes that “India is becoming a strategic hub,” with GCCs now taking on core functions including AI development and product innovation. While global firms are still drawn to India for cost efficiency and language skills, the depth of talent and execution capabilities are emerging as crucial differentiators. The expansion of manufacturing capabilities is further supported by a growing pool of specialized engineers and compliance professionals, shifting India’s role from merely executing global strategies to actively shaping them.
Another noteworthy trend is the behavior of Generation Z in the workforce. Although this cohort is known for job-hopping, Agarwala clarifies that this is not indicative of a lack of commitment. Instead, they seek flexibility, learning opportunities, and purpose. Many prefer stability when clear growth paths are established. Employers face the challenge of managing expectations around hybrid work arrangements, transparent pay structures, and rapid skill development. Organizations that invest in structured career paths and mentorship are witnessing reduced attrition rates among Gen Z employees.
Despite the likelihood of continuing layoffs in consumer tech and startups, especially due to AI-driven restructuring, Agarwala maintains that this is not a collapse but rather a reallocation of resources. Hiring remains robust in areas such as AI, cloud computing, cybersecurity, and compliance, as companies trim excess while “investing in capability-building for future growth.”
As the Indian job market evolves, adaptability is becoming more crucial than experience. Agarwala identifies three skill areas essential for the future: AI and data fluency, governance and compliance literacy including ESG, and cross-functional execution across technology, operations, and sustainability. For Indian professionals, the message is clear: while the job market is not shrinking, it is demanding more from individuals. Those committed to continuous learning are not just positioned to survive the transition; they will have the opportunity to shape its future.
Michael Page | NITI Aayog | IBEF
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