India’s Manufacturing, Engineering and Infrastructure (MEI) sector experienced a 6.6% Net Employment Change in the first half of the fiscal year 2026–27, up from 5.5% in the previous year, as per a report by TeamLease Services. Around 70% of employers in the sector are planning to expand their workforce due to strengthened hiring intent, positioning the MEI sector among the top three industries nationally in terms of hiring intent.
Balasubramanian A, Senior Vice President at TeamLease Services, mentioned that the MEI sector has moved past the recovery phase, with the high Net Employment Change reflecting continuous investment in semiconductors, clean energy, and advanced manufacturing. This acceleration is attributed to the increase in industrial investment cycles and policy-driven momentum, particularly in semiconductor investments in Gujarat, Tamil Nadu, and Karnataka, which are expected to create approximately 1 million jobs by 2026–28.
The report highlighted that the National Manufacturing Mission’s efforts in clean-tech manufacturing, semiconductor ecosystem development, and Production-Linked Incentive (PLI) frameworks are aiding in structured talent development throughout the value chain. Industry 4.0 adoption is reshaping demand towards digitally-enabled roles in plant operations and engineering design, with core demand areas including plant engineering, automation engineering, project management, ATMP operations, and sustainability-linked manufacturing roles.
According to the report based on a survey of 1,268 employers across 23 industries, engineering as a function is showing continuity in execution, with 33% of employers planning growth and 46% maintaining stable headcounts, indicating sustained activity driven by capital expenditure rather than speculative hiring. City-wise, Chennai leads in expansion intent at 24%, followed by Pune at 20% and Bengaluru at 18%, with Pune’s hiring momentum supported by its proximity to manufacturing clusters and engineering R&D ecosystems.
Tamil Nadu, Maharashtra, and Gujarat continue to drive manufacturing employment through automotive, semiconductor, and EPC project pipelines. The report also forecasts salary increments in the MEI sector for FY2026–27 at 9.4%, surpassing IT at 8.9%, banking at 8.8%, and insurance at 8.7%, with Chennai and Pune leading in salary increments at 9.8% each.
