India’s Manufacturing, Engineering and Infrastructure (MEI) sector has recorded a Net Employment Change of 6.6% for the first half of FY2026–27, up from 5.5% in the previous half-year, according to TeamLease Services’ latest Employment Outlook Report released on April 28, 2026.
The report, based on inputs from 1,268 employers across 23 industries and 20 cities, found that 70% of MEI employers plan to expand their workforce, placing the sector among the top three industries by hiring intent nationally. Engineering as a function reflects the same pattern: 33% of employers plan to grow headcount and 46% plan to maintain current levels, indicating capex-driven activity rather than speculative hiring.
“India’s Manufacturing, Engineering and Infrastructure sector has crossed the recovery phase and the high NEC reflects sustained investment pipelines across semiconductors, clean energy and advanced manufacturing,” said Balasubramanian A, Senior Vice President, TeamLease Services. “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 salary numbers are where MEI breaks ahead of services. The report projected sector salary increments for FY2026–27 at 9.4%, ahead of IT at 8.9%, banking at 8.8%, and insurance at 8.7%. Chennai and Pune lead city-level salary increments at 9.8% each.
City-level hiring intent reflects the same geography of opportunity. Chennai tops expansion intent at 24%, followed by Pune at 20% and Bengaluru at 18%. Tamil Nadu, Maharashtra, and Gujarat continue to anchor manufacturing employment generation through automotive, semiconductor, and EPC project pipelines. Pune’s hiring momentum, the report notes, is supported by its proximity to manufacturing clusters and engineering R&D ecosystems.
The biggest single driver in the data is semiconductors. The report estimates that semiconductor investments in Gujarat, Tamil Nadu, and Karnataka are expected to generate around 1 million jobs across fabrication, ATMP (assembly, testing, marking, and packaging), chip design, and supply-chain functions between 2026 and 2028. Roles in plant engineering, automation engineering, project management, ATMP operations, and sustainability-linked manufacturing are seeing the sharpest demand spikes.
