India's MEI sector enters stable expansion phase; hiring intent rises to 70%: Report

India's Manufacturing, Engineering and Infrastructure (MEI) sector is witnessing a shift from cyclical recovery to steady expansion, with 70 per cent of employers planning to increase hiring, according to a report by TeamLease Services. The report said net employment growth is expected to rise to 6.6 per cent in the first half of FY2026-27, up from 5.5 per cent in the previous half-year, placing the sector among the top three industries in hiring intent.

"India's Manufacturing, Engineering and Infrastructure (MEI) sector has recorded a Net Employment Change (NEC) of 6.6% for HY1 FY2026-27, strengthening from 5.5% in the previous half-year. With 70% of MEI employers planning workforce expansion, the sector ranks among the top three industries by hiring intent nationally, signalling a shift from cyclical recovery to structured expansion," the report said. As per the TeamLease Employment Outlook Report, the growth is driven by strong industrial investments and policy support, including initiatives such as the National Manufacturing Mission, clean-tech manufacturing push, semiconductor development and production-linked incentive (PLI) schemes.

It noted that semiconductor investments in Gujarat, Tamil Nadu and Karnataka are likely to create around 1 million jobs between 2026 and 2028 across areas like fabrication, ATMP, chip design and supply chains. The report added that the adoption of Industry 4.0 is increasing demand for high-skill and digital roles, especially in plant operations and engineering design.

Hiring demand is rising for roles such as plant engineering, automation engineering, project management, ATMP operations and sustainability-linked manufacturing. Engineering hiring remains steady, with 33 per cent of employers planning to expand and 46 per cent maintaining current workforce levels, indicating continued investment-led activity.

The report highlighted that hiring growth is mainly seen in sectors such as electric vehicles, renewable energy and advanced manufacturing. Among cities, Chennai leads hiring intent at 24 per cent, followed by Pune at 20 per cent and Bengaluru at 18 per cent. States like Tamil Nadu, Maharashtra and Gujarat continue to drive job creation.

On salaries, the sector is expected to see an average increase of 9.4 per cent in FY2026-27, higher than IT, banking and insurance sectors. Chennai and Pune are likely to record the highest salary growth at 9.8 per cent each, strengthening their position as key talent hubs.

The report also noted changes in workforce structure, with 64 per cent of companies reporting higher employment costs and 80 per cent revising salary structures. It added that about 20 per cent of firms are adjusting workforce models, while 62 per cent are upgrading HR and payroll systems, reflecting a shift towards digital compliance and structured workforce management.

The report says the sector is entering a stable expansion phase, with hiring decisions increasingly focused on efficiency and integrated project execution across manufacturing, energy and infrastructure. (ANI)

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