India's Job Market Shows Robust Growth in 2025
Hiring activity across India's private sector demonstrated significant improvement during the first ten months of 2025, according to recent data analysis. This positive trend stems from strengthened consumer demand, healthier order books, and a steady recovery in business confidence throughout the country.
PMI Data and Corporate Hiring Momentum
An examination of HSBC and S&P Global Market Intelligence data reveals that the employment component of the seasonally adjusted HSBC India Purchasing Managers' Index climbed to 53.8 during January-October 2025. This marks a notable increase from the 52.5 reading recorded during the same period in 2024.
Executives from major conglomerates including Vedanta Group and RPG Group, along with senior economists, have confirmed the strengthening employment environment. Multiple factors have contributed to this upswing:
- Reduced GST rates
- Moderating inflation patterns
- Softer interest rates
These economic conditions have stimulated consumer activity across various sectors, encouraging companies to expand their workforce capacity.
Major Companies Drive Employment Growth
KEC International, operating under the RPG Group umbrella, reported that its hiring strategy has closely followed its expansion trajectory. Vimal Kejriwal, MD & CEO of KEC International, stated: "We have maintained stronger hiring momentum throughout 2025. Our recruitment remained robust between January and September, with overall workforce expanding by approximately 13% compared to last year's first half." The company added more than 1,500 professionals during the first half of FY26.
Vedanta Group reported even more substantial growth, with recruitment increasing by 15-18% compared to last year. A company spokesperson explained: "Our hiring momentum continues to accelerate alongside business growth, driven by large-scale project execution and new investments across our aluminium, zinc, silver, and copper verticals." The company is actively strengthening talent pipelines as it diversifies into new business sectors.
Sectoral Analysis and Economic Outlook
Sector-specific PMI data reveals consistent growth patterns. Within manufacturing, the employment index reached 53.8 this year compared to 52.4 in 2024, while services sector employment rose to 53.8 from 52.5 during the same period.
Madan Sabnavis, Chief Economist at Bank of Baroda, observed that "hiring is primarily occurring at larger companies, which represents a positive indicator that we hope will be sustained."
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, attributed the job creation strength to "robust sales performances, strategic planning for anticipated demand growth, and initiatives to ensure sufficient operational capacity."
Official indicators corroborate this positive trend, with the labor force participation rate climbing to a five-month peak of 55.3% in September from 55% in August.
Economists anticipate this momentum will continue as tax reductions and healthy consumption patterns permeate the economy. Gaura Sengupta, Chief Economist at IDFC First Bank, predicted: "With GST and income tax reductions, urban demand will intensify, leading to further employment improvements."
KEC International maintains a strong outlook, supported by substantial order books, government infrastructure spending, and growing business opportunities in the Middle East. Vedanta credits its hiring achievements to diversification into green energy and digital technology, increased local sourcing that generates indirect employment, AI-enhanced recruitment efficiency, and an expanded talent pool incorporating global experts and advanced manufacturing specialists.
