The job market in India is expected to see annual salary hikes of 6%-15% this year, depending on the industry, role criticality, and niche skills. The hike may be in the range of 30%-40% for emerging skills and critical leadership roles, according to Michael Page 2025 Salary Guide.

The job market has shown resilience, with more opportunities across sectors compared to early 2024, particularly evident in the financial services, manufacturing, and technology sectors, noted the leading global recruitment consultancy.

Over a dozen new global private equity, sovereign, venture capital, real estate and infrastructure funds have established offices in India, reflecting its importance to global investors, the report mentioned.  

“India’s job market has expanded, with GCCs and foreign investments driving demand for returning global talent, a trend that picked up significantly over the last year,” said Ankit Agarwala, Managing Director PageGroup, in a LinkedIn post. 

“Sustainability and ESG-focused jobs are now gaining traction, reflecting India’s broader shift toward green energy and ethical business practices,” Agarwala added. 

Moreover, the manufacturing sector has gained significant momentum, driven by government initiatives and increased domestic investments in renewable energy, electric vehicles, and semiconductor industries, it said.

“Looking ahead, we anticipate continued growth in sectors, such as financial services, healthcare, infrastructure…The technology sector is evolving, driving greater demand for specialised expertise in AI/ML, cybersecurity, and data privacy. While salaries in traditional roles like operations may stagnate due to automation, the gig economy is creating flexible, project-based work opportunities,” said Nilay Khandelwal, Senior Managing Director, Michael Page Singapore and India. 

About diversity and inclusion, the report said there is now more emphasis on it with many organisations targeting 50% female representation through competitive compensation packages and flexible working arrangements.

For organisations navigating this dynamic market, success lies in maintaining agile hiring strategies while offering compelling employee value propositions, the report said.  

“Speed in decision-making, combined with clear growth paths and competitive compensation packages, will be crucial in securing and retaining top talent in 2025,” it suggested.

Key HR trends include more emphasis on employee well-being 

The human resources (HR) talent landscape is rapidly evolving, shaped by digital transformation, hybrid work models and changing workforce demographics. “Key trends include an increased emphasis on employee experience, well-being and flexible work arrangements to attract and retain talent,” the report said.  

Skills in areas, such as data analytics, employee engagement and digital fluency are now essential, as HR professionals are expected to leverage technology for tasks including recruitment, onboarding, and talent management. “The demand for Diversity, Equity and Inclusion (DEI) expertise continues to grow, reflecting a broader commitment to creating inclusive workplaces,” it said.

The competition for talent, particularly in technology and specialised roles, remains fierce, driving organisations to focus on upskilling, internal mobility and employer branding.

India’s tech outlook to remain strong

The country’s tech outlook remains strong as it is driven by rapid digital transformation, a vibrant startup ecosystem, and rapid GCC growth, the report said. Technology is now central to business operations across traditional industries, enabling innovation and optimising models, shifting from a support function to a core business driver. 

“Industry 4.0, AI/ML, and telemedicine drive smarter production, better decision-making, and technological innovations in healthcare, such as telemedicine and AI-powered diagnostics. Retail embraces data-led e-commerce, while supply chains adopt digital tools for efficiency and visibility. Demand rises for tech professionals skilled in AI/ML, cloud computing, full-stack development, and cybersecurity. IoT, 5G, and quantum computing also gain traction, creating opportunities across sectors,” it said. 

Temporary staffing and contingent workforce are set for growth

Driven by cost-time benefits, work-life balance considerations, and access to hiring specialised talent without geographical constraints, the temporary staffing is set for significant growth in India’s job market.

“Technological advancements, particularly in artificial intelligence and automation, may lead to workforce transitions, creating opportunities for contingent workers to bridge emerging skills gaps,” it said. 

The current macroeconomic environment and ongoing economic uncertainty encourage businesses to adopt more flexible workforce strategies. The growing preference for flexible work arrangements among professionals makes temporary staffing appealing for employers and employees, addressing skill shortages while enabling swift, efficient hiring for crucial roles.