India's employment landscape wrapped up FY25 on a resilient and optimistic note, marked by high levels of hiring activity, especially in the technology and digital transformation domains. According to the Indeed Hiring Tracker, a comprehensive report tracking employment trends across key sectors, 82% of Indian employers were actively recruiting during the final quarter of FY25 (January to March 2025). This reflects a 3% increase compared to the previous quarter, underlining sustained corporate confidence despite global economic headwinds.

Fresher Hiring Surges Across Tech and Digital Roles

In a noteworthy trend, fresh graduates accounted for 53% of all new hires during Q4 FY25. This is indicative of a strategic shift among companies to invest in early-career talent and build future-ready workforces. Employers, especially in IT services, startups, and product-based companies, are targeting young professionals who can be molded to fit evolving organizational needs.

The highest demand was seen for roles in:

• Software Development (29%)

• Data Analytics and Data Science (26%)

• Sales and Business Development (23%)

These areas reflect the broader digitization wave sweeping through Indian industries, with companies doubling down on building tech-savvy teams equipped to navigate artificial intelligence, machine learning, and cloud computing landscapes.

Artificial Intelligence Talent in High Demand

The increasing appetite for AI and data science professionals is reshaping recruitment strategies across sectors. Employers are prioritizing candidates with hands-on expertise in tools and technologies like Python, TensorFlow, AWS, Kubernetes, and cybersecurity frameworks. AI is no longer a niche function but a core business enabler, and firms are racing to onboard talent that can drive innovation and efficiency.

Indeed’s report reveals that over one-third of surveyed employers plan to hire freshers with AI skills in the first quarter of FY26. This signals a broader shift toward future-proofing the workforce in sectors such as financial services, healthcare, logistics, edtech, and e-commerce.

Salary Trends: Freshers Hold Firm Despite Modest Hikes

While fresher recruitment is on the rise, the salary conversation remains a point of friction between employers and job seekers. According to the report:

• 72% of employers increased fresher salaries in FY25.

• 60% of these hikes were capped at 5%, below expectations.

• The average fresher offer stood at ₹3.5 lakh per annum (approximately US$ 4,140.02).

• In contrast, fresher salary expectations hover around ₹3.8 lakh per annum (US$ 4,494.87).

Surprisingly, 72% of freshers expressed unwillingness to compromise on salary, even when offered roles with long-term growth potential. This highlights the growing confidence and bargaining power of entry-level talent in a market where tech skills are in short supply.

Skills Gap: A Persistent Challenge

Despite strong hiring intent, employers remain concerned about job readiness among candidates. The skills gap—especially in areas like communication, teamwork, time management, and problem-solving—was cited by 38% of employers as the biggest barrier to successful hiring.

This gap is especially pronounced in technical roles, where practical experience and the ability to apply theoretical knowledge in real-world scenarios remain elusive for many applicants. According to Indeed, there are an average of seven applicants per tech role, underscoring the intense competition freshers face and the importance of standing out through upskilling and internships.

Hiring Sentiment in FY26: Cautious Optimism Prevails

Looking ahead to FY26, the hiring sentiment is expected to remain cautiously optimistic. According to Mr. Sashi Kumar, Head of Sales at Indeed India, companies are becoming more deliberate and strategic in their recruitment efforts. The emphasis is shifting from volume hiring to quality hiring, where technical proficiency, project exposure, and cultural fit take precedence.

Sectors such as AI, fintech, renewable energy, logistics tech, and healthtech are projected to drive early-career hiring momentum, fueled by India's digital public infrastructure (DPI) expansion and government initiatives like Startup India and Digital India.

The Future of Work: AI and Human Skills in Harmony

As automation and AI reshape business operations, there is a growing demand for blended skillsets—those that combine technical capabilities with human-centric traits. Employers are keen to onboard individuals who not only code but can also collaborate, present, negotiate, and lead. Educational institutions are being urged to recalibrate their curricula to meet these evolving needs and produce industry-ready graduates.

The rise of AI-powered hiring platforms, skill assessments, and internship-driven job offers is transforming the recruitment ecosystem. Both job seekers and employers are adapting to this new normal, where continuous learning is no longer optional but essential for career advancement.

Conclusion

India’s job market ended FY25 on a high, with strong hiring across tech-driven domains and an increasing reliance on fresh graduates to meet future demands. The demand for AI talent, though still nascent, is rapidly growing and poised to dominate the employment narrative in FY26 and beyond.

However, for India to fully capitalize on this momentum, both employers and the education sector must address the skills gap, revise hiring structures, and balance salary expectations. With these measures in place, India is well-positioned to lead in the global digital economy—powered by fresh minds and artificial intelligence.

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