Projections for India’s labor market are upbeat, with average wage growth forecasted at 9.1 percent for 2026, surpassing the 8.9 percent of 2025. This insight, from a authoritative report by a prominent services firm issued Tuesday, analyzes vast employer data.
Industry disparities stand out: real estate/infrastructure tops at 10.2 percent, NBFCs at 10.1 percent, driven by expansion projects. Technology, consulting, and services bottom out at 6.6 percent, constrained by operational efficiencies.
Above-average hikes await automotive, engineering services, manufacturing, and retail employees. Specifics include retail at 9.5 percent, life sciences at 9.4 percent, global capability centers at 9.3 percent, and funds management at 8.5 percent.
The expansive study – 1,400+ entities, 45 sectors – identifies key employer strategies: bolstering technology, engineering, and customer capabilities amid fierce talent rivalries in flux markets.
Retention improves steadily, with attrition at 16.2 percent in 2025 versus 17.7 percent in 2024 and 18.7 percent in 2023. This stems from precise recruitment, engagement boosts, development paths, and reliable settings.
Equipped with stable staffs and enhanced talent environments, organizations are ideally placed for focused skill programs, investments in critical areas, and nurturing pipelines for enduring success.
The firm’s India talent associate partner notes labor codes’ rollout as pivotal. Standardized definitions and social security expansions prompt pay restructurings. Proactive, transparent dialogue will safeguard trust and continuity.