India HR market overview – Q1 2025

 

 

Indian economy in 2025 is anticipated to be one of the fastest-growing economies due to it’s resilience and growth over the years.

 

Manufacturing Sector: A Strategic Growth Driver

The manufacturing sector is the emerging pillar of the Indian economic growth. The sector is steadily advancing toward automation and process-driven production. Foreign investments in manufacturing have seen a significant growth. Additionally, to support local manufacturing, the Government budget focuses on innovation, infrastructure, and human capital.

 

Hiring Landscape: Positive Momentum Across HR Functions

The hiring outlook remains positive with employers planning to increase recruitment in the first half of the year. Additionally, we have seen job momentum in the Mid-Senior level for HR positions across industries. Companies are now focused on data-driven hiring, HR technology, and AI adoption.

 

BFSI Sector: Continued Growth and Competitive Talent Strategies

The BFSI sector continues on an upward trajectory in 2025, marked by steady growth and evolving talent dynamics. Inflationary salary adjustments in the sector have ranged between 9–11%, with some professionals receiving increases as high as 15%. Performance-based raises have remained strong, averaging between 8–15%. Newer entrants in the market are finding it challenging to retain talent, often resorting to more competitive compensation strategies to attract and keep key professionals. At the same time, the sector is experiencing rapid expansion in digital payment solutions, reinforcing its shift toward innovation and tech-driven financial services.

 

Overall, India’s economic trajectory in 2025 reflects a balanced approach to growth and human capital development.