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India's MEI Sector Sees 6.6% Net Employment Gain, Hiring Intent Rises

India's Manufacturing, Engineering and Infrastructure (MEI) sector recorded a Net Employment Change of 6.6% for HY1 FY2026-27, up from 5.5% last year. Around 70% of employers plan workforce expansion, with semiconductor investments in Gujarat, Tamil Nadu, and Karnataka expected to generate 1 million jobs by 2026-28. Chennai leads city-level expansion at 24%, followed by Pune and Bengaluru, while salary increments are projected at 9.4%, ahead of IT and banking sectors. The sector has crossed the recovery phase, driven by sustained investment pipelines in clean energy and advanced manufacturing.

Key Points: India MEI Sector 6.6% Net Employment Gain: Report

  • Net Employment Change rises to 6.6% from 5.5%
  • 70% employers plan workforce expansion
  • Semiconductor investments to generate 1 million jobs
  • Chennai leads city-level expansion at 24%
2 min read

India's MEI sector posts 6.6 pc net employment gain as hiring intent rises

India's Manufacturing, Engineering & Infrastructure sector posts 6.6% net employment growth. 70% employers plan hiring, with semiconductor investments driving 1 million jobs.

"MEI sector has crossed the recovery phase and the high NEC reflects sustained investment pipelines across semiconductors, clean energy and advanced manufacturing. - Balasubramanian A, Senior Vice President, TeamLease Services"

New Delhi, April 28

India's Manufacturing, Engineering and Infrastructure sector recorded a Net Employment Change of 6.6 per cent for HY1 FY2026-27 up from 5.5 per cent in prior year, a report said on Tuesday.

Around 70 per cent of employers plan workforce expansion as hiring intent has strengthened and the sector ranks among the top three industries by hiring intent nationally, the report from TeamLease Services said.

Balasubramanian A, Senior Vice President, TeamLease Services, said that MEI sector has crossed the recovery phase and the high NEC reflects sustained investment pipelines across semiconductors, clean energy and advanced manufacturing.

The acceleration reflects a build‑up in industrial investment cycles and policy-led momentum, with semiconductor investments in Gujarat, Tamil Nadu and Karnataka expected to generate around 1 million jobs across fabrication, assembly, testing, marking, and packaging (ATMP), chip design and supply‑chain functions by 2026-28.

"The National Manufacturing Mission's integrated push across clean-tech manufacturing, semiconductor ecosystem development, and PLI frameworks is supporting structured talent creation across the value chain," the report said.

The firm said that industry 4.0 adoption reshapes demand towards higher value, digitally-enabled roles across plant operations and engineering design.

Plant engineering, automation engineering, project management, ATMP operations, and sustainability-linked manufacturing roles remain core demand areas.

Based on a survey of 1,268 employers across 23 industries, the report said that engineering as a function reflects execution continuity, with 33 per cent of employers planning growth and 46 per cent maintaining stable headcount, indicating sustained capex-driven activity rather than speculative hiring.

Chennai leads city-level expansion intent at 24 per cent, followed by Pune at 20 per cent and Bengaluru at 18 per cent. In Pune hiring momentum is supported by proximity to manufacturing clusters and engineering R&D ecosystems.

Tamil Nadu, Maharashtra, and Gujarat continue to anchor manufacturing employment generation through automotive, semiconductor, and EPC project pipelines.

The report projected MEI sector salary increments for FY2026-27 at 9.4 per cent, ahead of IT at 8.9 per cent, banking at 8.8 per cent, and insurance at 8.7 per cent. Chennai and Pune lead salary increments at 9.8 per cent each.

- IANS

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Reader Comments

P
Priya S
Finally some hope for engineering graduates! 🎉 With semiconductor investments in Gujarat and Tamil Nadu, things might actually improve. But 9.4% salary increment - will that keep up with inflation? Also hope these jobs are not just contract-based.
V
Vikram M
Impressive numbers! But I'll believe it when I see it. Many reports show rosy pictures while actual hiring is slow. The PLI schemes and National Manufacturing Mission are good steps but need faster implementation. Still, better than last year's 5.5%.
A
Ananya R
Love seeing manufacturing getting attention. Industry 4.0 adoption means more digital roles - my friends in automation engineering are seeing good opportunities. Pune being at 20% is no surprise with all the auto and R&D clusters there.
R
Rohit P
One crore jobs projected from semiconductor investments sounds ambitious. Let's hope states like Gujarat and Tamil Nadu actually deliver on infrastructure. The 9.4% salary hike projection is interesting - finally manufacturing paying better than IT? 🤔
K
Kavya N
Good news for a change! My brother works in plant engineering and says demand is real. But we need more skilling programs - many graduates don't have the digital skills for Industry 4.0 roles. Also hope these increments actually reach workers on shop floor.
S
Sidd

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