Will Tier-2 Cities Contribute 35% of India's Advanced Engineers by 2028?

New Delhi, Sep 12 (NationPress) Tier-2 and Tier-3 cities in India are poised to significantly impact the nation's engineering talent pool in the coming years, as indicated by a recent report released on Thursday.

The analysis from NLB Services reveals that these cities might represent nearly 35 percent of India’s advanced engineers by 2028, driven by the emergence of new institutes, tech parks, and skilling hubs outside conventional metropolitan areas.

Locations like Jaipur, Vadodara, Coimbatore, Kochi, Pune, and Indore are rapidly becoming preferred hubs for businesses in search of affordable, high-quality talent.

The findings show that India currently produces around 1.5 million engineering graduates annually across various fields including mechanical, civil, IT, software, and manufacturing.

Despite this, only 45 percent of graduates meet industry standards, although 60–72 percent are generally deemed employable.

This skills gap is particularly evident in emerging sectors such as artificial intelligence, data science, electric vehicles (EVs), and semiconductors.

Strategic investments in reskilling, incubation centers, and partnerships between academia and industry are expected to close this gap, with engineers from Tier-2 cities anticipated to comprise 15–20 percent of India's advanced engineering workforce by 2027.

The technology sector in India, valued at $250 billion and contributing 7.5 percent to GDP, is projected to grow to $350 billion by FY25, according to the report.

This expansion is creating a heightened demand for engineering professionals across various sectors. The increase in Global Capability Centres (GCCs) has further propelled this trend, with Indian engineers not only enhancing domestic firms but also leading innovation at some of the globe's largest tech corporations.

The report emphasizes that the future of India's economy will hinge on STEM-led innovation.

With 70 percent of new job opportunities anticipated to require STEM skills, proficiency in areas like AI, machine learning, data engineering, embedded systems, and ethical AI governance will be essential.

India is expected to need 1 million AI-trained engineers by 2026, yet the current supply only fulfills 20 percent of this demand, according to the report.

Likewise, the EV sector, expanding at an annual growth rate of 30–40 percent, is projected to require 10–20 lakh engineers by 2030 in areas such as battery technology, automotive electronics, and sustainable design.

The semiconductor industry is also creating new possibilities, especially following the launch of India’s first indigenous 32-bit microprocessor, VIKRAM3201, marking a significant step towards self-sufficiency.

India is projected to need 25,000–30,000 skilled engineers each year in chip design, process engineering, and testing.