India's MEI sector logs 6.6% net employment rise, beats IT on salary growth
Synopsis
India's manufacturing sector isn't just recovering — it's accelerating. With a 6.6% net employment gain, salary increments outpacing IT and banking, and semiconductor investments poised to generate 1 million jobs by 2028, the MEI sector is emerging as the country's most dynamic hiring engine heading into FY2027.
Key Takeaways
India's MEI sector posted a Net Employment Change of 6.6% in HY1 FY2026–27 , up from 5.5% the previous year.
Around 70% of employers in the sector plan workforce expansion, placing MEI among the top three industries by hiring intent.
Semiconductor investments in Gujarat , Tamil Nadu , and Karnataka are projected to generate approximately 1 million jobs by 2026–28 .
MEI sector salary increments for FY2026–27 are projected at 9.4% , ahead of IT ( 8.9% ), banking ( 8.8% ), and insurance ( 8.7% ).
Chennai leads city-level expansion intent at 24% , followed by Pune at 20% and Bengaluru at 18% .
Tamil Nadu , Maharashtra , and Gujarat anchor manufacturing employment through automotive, semiconductor, and EPC project pipelines.
India's Manufacturing, Engineering and Infrastructure (MEI) sector recorded a Net Employment Change (NEC) of 6.6% for the first half of FY2026–27, up from 5.5% in the prior year, according to a report released on Tuesday, 28 April by TeamLease Services. The sector now ranks among the top three industries by hiring intent nationally, with around 70% of employers planning workforce expansion.
Key Findings from the TeamLease Report
The report, based on a survey of 1,268 employers across 23 industries, found that the MEI sector has moved decisively beyond its post-pandemic recovery phase. Balasubramanian A, Senior Vice President at TeamLease Services, said the high NEC figure
Point of View
Policy-backed industries. What is notable is that salary growth in manufacturing now outpaces IT for the first time in recent memory, a reversal that reflects both the tightening of specialised talent supply and the scale of semiconductor and clean-energy investments flowing in. The concentration of hiring intent in Chennai, Pune, and Bengaluru also reveals a familiar pattern: industrial growth remains clustered in existing ecosystems rather than spreading to newer geographies. Whether the National Manufacturing Mission can broaden this footprint beyond the usual suspects will determine whether the 1-million-jobs semiconductor projection translates into inclusive growth or another coastal-city boom.
NationPress
1 May 2026
Frequently Asked Questions
What is the Net Employment Change recorded by India's MEI sector in FY2026–27?
India's Manufacturing, Engineering and Infrastructure sector recorded a Net Employment Change of 6.6% for the first half of FY2026–27, up from 5.5% in the prior year, according to a TeamLease Services report released on 28 April.
Which cities lead MEI sector hiring intent in India?
Chennai leads city-level expansion intent at 24%, followed by Pune at 20% and Bengaluru at 18%, according to the TeamLease Services report. Pune's momentum is supported by proximity to manufacturing clusters and engineering R&D ecosystems.
How many jobs are expected from semiconductor investments in India by 2028?
Semiconductor investments in Gujarat, Tamil Nadu, and Karnataka are expected to generate approximately 1 million jobs by 2026–28, spanning fabrication, assembly, testing, chip design, and supply-chain functions.
How does MEI sector salary growth compare with IT and banking?
The MEI sector is projected to lead salary increments at 9.4% for FY2026–27, ahead of IT at 8.9%, banking at 8.8%, and insurance at 8.7%, according to the TeamLease report. Chennai and Pune top the city-level salary increment list at 9.8% each.
What roles are in highest demand in the MEI sector?
Plant engineering, automation engineering, project management, ATMP operations, and sustainability-linked manufacturing roles are identified as core demand areas. Industry 4.0 adoption is driving a shift toward higher-value, digitally-enabled positions across plant operations and engineering design.
