India experienced a 21% increase in diversity hiring in May 2026, showcasing a continued commitment by employers towards inclusive workforce practices. White-collar hiring, however, saw a 4% year-on-year decrease and a 6% sequential decline during the same period, as reported by a jobs platform. Women constituted 56% of all diversity-focused recruitment, while the representation of persons with disabilities (PwD) tripled over a two-year period, reaching 12%.
Diversity and inclusion (D&I) focused hiring, encompassing LGBTQIA+ and neurodiverse talent, now accounts for nearly a third of all diversity hires. This trend has notably expanded to 32%, particularly within IT and consulting organizations that have embraced broader inclusion strategies. Tarun Sinha, CEO of foundit, highlighted that while overall hiring has become more selective, organizations are still investing in talent areas that bolster long-term business resilience.
The approach of Indian companies towards diversity and inclusion (D&I) is evolving, shifting from a mere compliance necessity to a strategic capability. This transformation is evident in the expansion of diversity hiring into leadership positions and technology functions, indicating a more holistic and mature approach to developing future-ready workforces. PwD hiring has been boosted by investments in accessibility, inclusive workplace design, and compliance with ESG standards.
IT – Software & Services remains the leading sector for diversity hiring at 25%, with 40% of its diversity hires comprising LGBTQIA+ and neurodiverse talent. Among various industries, BFSI boasts the highest women representation in its diversity hires at 62%, followed by FMCG at 61% and healthcare at 60%. PwD hiring is notably concentrated in ITES or BPO (18%) and manufacturing or automotive (16%), while consulting & analytics has expanded its diversity share from 12% to 14%.
In the fiscal year 2026, Bengaluru emerged as the top location for diversity hiring, with its share rising from 15% to 19%, primarily driven by demand for technology, BFSI, and healthcare talent. Hyderabad witnessed significant growth, increasing from 10% to 15%, driven by demand from GCCs, technology firms, and pharmaceutical enterprises. Startups contributed 21% to diversity hiring, with a focus on AI, SaaS, fintech, and HR technology companies that prioritize skills-based and inclusive hiring practices.
Currently, 18% of diversity-focused hires hold senior management and leadership positions, with mid-level roles constituting the largest share at 44%.
