The tech sector in India has been on fire lately, driving significant growth and creating new job opportunities. In the first quarter of the year, the IT and start-up ecosystem saw a whopping 20 per cent increase in new jobs. This growth trend is a positive sign for the industry, especially after a challenging period of layoffs in 2024. Indian start-ups, in particular, have experienced a remarkable 52 per cent decline in layoffs during Q1 2025, with only 1,602 employees affected across seven companies. This is a stark contrast to the previous year, which saw over 3,300 layoffs from 20 firms.
Recovery in the tech industry is also evident in the projected increase in hiring for 2025, with expectations set at 20-25 per cent. This surge in hiring reflects a renewed sense of confidence among investors and a shift towards more sustainable business models. Girish Shivani, Executive Director and Fund Manager at YourNest Venture Capital, expressed optimism about the future, stating, “Post the upheaval we saw in the last few quarters, there is a clear uptick in investment activity. With the tariff disruption behind us, we see a more bullish outlook emerging.” It seems like the worst may be over for the industry, as indicated by the positive trends in hiring and investment.
The growth in the tech sector is not limited to just IT companies but extends to other areas like e-commerce. E-commerce has seen a 9 per cent increase in hiring in the first half of 2025, particularly for roles such as logistics managers and data analysts. Neeti Sharma, CEO of TeamLease Digital, highlighted the rapid growth of AI and machine learning roles, which saw a 36 per cent increase in December 2024. She also pointed out the strong recovery in sectors like health tech, pharma tech, and deep tech, which have attracted increased funding and are expanding their workforce. The demand for talent in emerging technologies like AI, machine learning, cloud computing, and data analytics is high, with engineering roles witnessing a 20 per cent increase in demand. Companies are also leveraging AI to improve efficiency and are restructuring their teams accordingly. Despite the positive outlook, hiring in 2025 is expected to remain cautious, with companies being selective in their recruitment process. The geographical hiring pattern is evolving as well, with start-ups looking beyond metropolitan areas to build more diverse and inclusive teams. While metro cities still dominate in senior and technical roles, start-ups are actively seeking talent from non-metro areas to enhance cognitive diversity and expand their talent pool. Sectors like SaaS and health tech have shown better retention rates compared to e-commerce, with health tech expected to see a significant hiring growth of over 30 per cent in 2025. Overall, the tech industry in India is witnessing a strong recovery, driven by innovation, investment, and a shift towards sustainable business practices. The future looks bright for the sector, with promising opportunities for job seekers and investors alike.