India's MEI Sector Booms: 70% Employers Plan Hires

India's Manufacturing, Engineering, and Infrastructure (MEI) sector is transitioning from recovery to steady expansion, with a significant 70% of employers planning to increase their workforce. This positive hiring intent positions the sector among the top three nationally.

The growth is underpinned by substantial industrial investments and supportive government policies, including the National Manufacturing Mission and PLI schemes. These initiatives are expected to generate significant employment, especially in areas like semiconductor manufacturing.

Industry 4.0 adoption is notably increasing the demand for high-skill and digital roles, particularly in plant operations and engineering design. Sectors such as electric vehicles, renewable energy, and advanced manufacturing are leading this hiring surge.

Cities like Chennai and Pune are at the forefront of this job creation, with Chennai reporting the highest hiring intent. These cities are also projected to experience the highest salary growth, reinforcing their status as crucial talent centers.

The sector anticipates an average salary increase of 9.4% in FY2026-27, outpacing IT and banking sectors. Many companies are adjusting salary structures and workforce models to accommodate these changes and embrace digital compliance.