Tier-2 cities move to the core of India’s STEM job growth: Report
This shift is complemented by a leadership relocation, with senior management roles (>11 years experience) being distributed to these satellite centres for proximity advantages and reduced overheads.
ADVERTISEMENT
India’s STEM job market expanded from 6.8 million (Aug’23–Aug’24) to 7.3 million (Aug’24–Aug’25), recording a 7.4% year-on-year growth, as per a report on STEM hiring by foundit. The momentum is led by IT services, GCCs, BFSI, and Healthcare & Pharma, which continue to dominate hiring thanks to ongoing digital transformation and sectoral innovation. Together, these industries are driving demand for both traditional technology roles and specialized digital skills.
The Tier-2 Surge
A striking trend is the Tier-2 surge, with hiring in smaller cities growing at 1.5x the metro rate. Infrastructure projects, manufacturing hubs, and IT back-office expansion are powering this growth, making Tier-2 centres increasingly attractive for companies seeking both scale and cost efficiency. This shift is complemented by a leadership relocation, with senior management roles (>11 years experience) being distributed to these satellite centres for proximity advantages and reduced overheads.
Metros Lead, but Balance Is Shifting
Metros still dominate with 53% share (3.87 Mn jobs), growing 13.8% YoY, while non-metros hold 47% (3.43 Mn jobs) with marginal growth of 0.9%.
Bengaluru remains India’s STEM capital with 1.17 Mn jobs (16%), powered by IT, startups, and GCCs. Delhi NCR follows at 0.88 Mn (12%), anchored in BFSI, IT, and consulting. Hyderabad is the fastest-growing metro, jumping from 0.54 Mn to 0.66 Mn (9%), driven by IT and pharma. Mumbai (0.51 Mn, 7%) holds steady with BFSI and pharma, while Chennai (0.29 Mn, 4%) thrives in automotive and engineering. Pune (0.24 Mn, 3%) consolidates its engineering edge, and Kolkata (0.15 Mn, 2%) grows steadily in BFSI and IT.
At the same time, Tier-2 hubs are gaining ground. Ahmedabad (0.12 Mn) is rising on manufacturing and pharma; Jaipur (0.095 Mn) on IT services and BPO; Coimbatore (0.083 Mn) on textiles and engineering; and Lucknow (0.073 Mn) on BFSI and edu-tech. Smaller centres like Chandigarh (0.061 Mn), Indore (0.059 Mn), and Kochi (0.051 Mn) are also expanding across IT, healthcare, and BPO.
Together, these satellite cities are no longer peripheral but increasingly central to STEM job creation, offering cost advantages, proximity to talent, and specialized sectoral strengths.
Industries Driving STEM Hiring
Technology remains the single largest driver. IT–Software & Services alone will account for 2.48 million jobs in 2025 (35% share), powered by demand for digital transformation, cloud, cybersecurity, and AI-led solutions.
BFSI follows with 0.58 Mn jobs (9%), fuelled by fintech, data-driven banking, and compliance. Manufacturing and BPO/Tech-enabled services each add 0.51 Mn jobs (7%), reflecting automation adoption and the rise of global capability centres.
Beyond the big three, Healthcare & Pharmaceuticals (0.44 Mn, 6%) and Construction & Engineering (0.44 Mn, 6%) stand out, driven by India’s healthcare expansion and infrastructure push. Automotive (0.37 Mn, 5%) is transforming with EVs and R&D investments, while Energy (0.37 Mn, 5%) balances renewables with oil & gas.
Other sectors, though smaller, show strong resilience. Telecom and Consumer Electronics each employ 0.22 Mn (3%), boosted by 5G and connected devices. Agriculture (0.18 Mn, 3%) is turning tech-first through AgriTech, Biotech, and AI. Meanwhile, Education/EdTech, FMCG, and Media & Entertainment contribute 0.1–0.15 Mn jobs each (2%), tapping into analytics, R&D, and immersive technologies like AR/VR.
Taken together, these industries show how India’s STEM workforce is diversifying — IT and engineering still make up more than half, but finance, healthcare, and new-age sectors are reshaping the future of work.
Experience Levels: Freshers Power the Base, Leaders Guide the Transformation
Entry-level hiring (0–3 years) has become the backbone of STEM expansion, accounting for 40% of new jobs. By 2025, this segment will cross 3.28 Mn jobs (45% share). IT services, GCCs, and startups are the main absorbers of entry-level talent, while Tier-2 and Tier-3 hubs are emerging as strong bases. Freshers see 52% of hiring in non-metros versus 40% in metros, reflecting the rise of shared services and regional tech hubs.
The 4–6 years band holds 1.75 Mn jobs (24%), critical for delivery, project execution, and early leadership. Demand here is stronger in metros (27% vs 22% in non-metros), where complex projects and client-facing roles dominate.
The 7–10 years segment (15%) reflects growing need for experienced specialists in engineering, R&D, and product development, again led by metros.
At the senior end, demand is more selective but expanding. The 11–15 years band accounts for 9%, while those with over 15 years of experience rise to 7%, reflecting a sharper focus on governance, leadership, and succession planning. Unlike freshers, senior roles are less tied to location, with leadership hiring expanding into Tier-2 cities as companies diversify their talent footprint.
Overall, 2025 reflects a dual trend: bulk fresher hiring powering scale, and a rising emphasis on experienced leaders to guide transformation and innovation.
