Indian Job Market Revival: Double-Digit Growth in Hiring Intent Signals Economic Transformation

AI-related skills have become essential in today's recruitment landscape.

New Delhi:

Following a period of modest single-digit growth, hiring intent has rebounded to double digits at 11 percent, increasing from 9.75 percent in the previous year, bolstered by increased formalization and regional expansion, according to a new report.

The India Decoding Jobs 2026 Report, published by digital recruitment platform Taggd in partnership with the Confederation of Indian Industry (CII), indicates that sectors including BFSI, manufacturing, and infrastructure will lead the hiring momentum.

"This resurgence represents a transition from recovery to reinvention, fueled by digital acceleration, formalization, and regional expansion," stated Devashish Sharma, Co-Founder and CEO of Taggd.

This edition of the report gathers insights from over 300 talent leaders across 21 industries, providing a data-supported perspective on India's employment and talent landscape.

According to the report, AI is revolutionizing recruitment processes, with 60 percent of recruiters utilizing it for resume screening and 45 percent implementing it for interview automation. Consequently, AI-related skills have become as crucial in recruitment as they are throughout other industries.

Employers are actively seeking candidates proficient in technologies such as GenAI, cloud computing, and cybersecurity, alongside digital and data specialists, AI/ML engineers, solutions architects, and sustainability specialists, the report further noted.

The report indicates that 2026 is emerging as a year favoring experienced professionals, with companies increasingly focusing on mid- and senior-level talent, particularly those with 6-15+ years of experience.

Tier II cities are projected to account for 32 percent of anticipated jobs in 2026, as organizations, especially Global Capability Centers (GCCs), explore new regional talent hubs for both cost efficiency and emerging skill sets.

Female hiring is forecasted at 30 percent for FY 2026-2027, consistent with 2025 levels but lower than the 36 percent recorded in 2024, according to the report.