Manufacturing companies are finding it increasingly difficult to hire the right talent even as hiring intent in the sector remains strong. The demand for talent is expected to rise by 10–12% in FY27, according to estimates by HR and staffing firms. TeamLease Edtech notes that while overall hiring demand could grow by about 12%, companies are struggling to source skilled mid-level candidates with the right domain expertise and capabilities.
According to TeamLease’s Employment Outlook Report for HY2 FY25, manufacturing, engineering and infrastructure together show an 8.7% net increase in employment for FY25. Translating this sentiment into annual demand, FY25 is likely to see 0.9–1.1 million roles, driven by industrial corridors, EV supply chains, construction, and capex-led expansion.
“If current investments continue, hiring demand in manufacturing could rise to 1.1–1.3 million in FY26, and 1.3–1.5 million in FY27 as industrial capacity, logistics integration and large-scale infrastructure projects mature,” says Shantanu Rooj, founder and CEO, TeamLease Edtech.
Rooj adds that while hiring intent remains strong, the nature of demand is shifting. “Firms now seek hybrid engineers (automation, IoT, industrial analytics) rather than purely traditional hands-on roles. While India’s labour pool is sizable, there remains a gap in job-ready, specialised technicians. Firms often find entry-level candidates teachable but struggle to find mid-level candidates with both domain and digital skills out of the box,” he told TNIE.
The TeamLease report also notes that across all businesses in the services sector, 4–4.5 million jobs are likely to be created in FY26 due to digital adoption, GCC expansion, financial inclusion and growing consumption.
Sonal Arora, country head, Gi Group Holding, said, “By the next financial year, we expect hiring demand in manufacturing to be 8–10% higher than this year, while demand for mid- and senior-level roles is expected to rise by 4–5%.”
The challenge of finding the right talent is also echoed by industry leaders.
Rohit Thakur, CHRO, Auto & Farm Sector, M&M, says: “While India has a strong labour pool, finding sufficiently trained and skilled workers—especially for new-age technologies—remains a challenge. Hence, we focus heavily on reskilling and upskilling our workforce.”
Amit Arora, senior vice president, Trivitron Healthcare, says that although the talent base is expanding, it remains difficult to find an exact match for niche skills readily in the market.
Manufacturers also point out that core manufacturing roles are losing preference among campus hires, with more students moving toward technology and service-oriented careers. This has contributed to shortages in specialised areas such as mechatronics, AI/ML, and sustainability-focused disciplines.
“To bridge this gap, we hire young talent from institutions across the country, focusing on disciplines such as mechatronics, AI/ML, environmental engineering, in addition to mechanical and industrial & production engineering,” says Amit Singhal, CHRO, Escorts Kubota.