By: Shilpa Subhaschandra, Chief Commercial Officer, Operational Talent Solutions, Randstad India
India’s manufacturing sector stands as a cornerstone of the nation’s economic aspirations, currently contributing approximately 17% to the GDP. However, this figure merely touches the surface of the sector’s potential. Projections indicate robust growth opportunities that could elevate manufacturing’s contribution to GDP significantly within the next 6-7 years. This number showcases India’s capacity to fortify its position within the global supply chains, transforming from a cost-effective production hub to a manufacturing powerhouse.
The timing of this transformation couldn’t be more strategic. As global trade dynamics shift, supply chain diversification has become even more paramount for multinational corporations.
Moving ahead, the government’s initiatives, including the Production Linked Incentive (PLI) schemes across multiple sectors, the proposed Development of Enterprise and Services Hub (DESH) Bill have provided additional momentum to this growth story. These policy measures, combined with infrastructure development and ease of doing business reforms, have created a conducive environment for manufacturing expansion, directly translating into job creation opportunities across skill levels.
The May Paradox: Slower Growth, Record Hiring
The manufacturing landscape is experiencing a remarkable paradox. As per the HSBC Manufacturing PMI (Purchasing Managers’ Index), the sector’s growth slowed slightly in May this year, slipping to 57.6 from April’s 58.2. However, the industry still recorded it’s highest-ever rate of job creation. This counterintuitive trend signals a fundamental shift in how Indian manufacturers are approaching workforce planning — a strategic pivot that reflects both, confidence in long-term growth prospects and recognition of the evolving skill requirements in modern manufacturing.
Furthermore, this kind of hiring intent shows a significant shift in manufacturing workforce strategy. This trend suggests that companies are viewing current market conditions as a temporary adjustment rather than a fundamental downturn. By securing permanent talent during a period of relative calm, manufacturers are positioning themselves to capitalize on anticipated growth when market conditions improve.
This strategic approach to hiring reflects several underlying factors. First, the increasing complexity of modern manufacturing processes requires workers with specialized skills and deep institutional knowledge. Second, the competitive landscape for skilled manufacturing talent has intensified, making it crucial for companies to offer stability and career progression opportunities to attract and retain top performers.
Driving Forces behind the Hiring Surge
The unprecedented job creation in India’s manufacturing sector stems from multiple converging factors, each reinforcing the others to create a robust demand for permanent talent. According to the Randstad – India Talent Insights report 2025, production managers, supply chain and logistics professionals, and operations management specialists continue to dominate hiring demand, reflecting the sector’s evolution toward more sophisticated operational models.
Geographic expansion plays a crucial role in this hiring trend. From automotive and electronics to aerospace and textiles, cities like Bengaluru have witnessed significant manufacturing expansion driven by both multinational and domestic companies, fuelling strong talent demand. The establishment of specialized facilities showcases how emerging technologies are creating entirely new categories of manufacturing jobs that didn’t even exist a few years ago.
Moreover, the shift toward innovation-driven and sustainable manufacturing models is fundamentally reshaping skill requirements across the sector. Companies are recognizing that the traditional manufacturing roles are evolving rapidly, necessitating continuous upskilling and reskilling initiatives.
The New Skills Landscape
The evolution of the manufacturing industry is intrinsically linked to the evolving skill requirements that define modern production environments. Today’s manufacturers require workers who can seamlessly blend technical expertise with analytical capabilities, creating value through both operational excellence and continuous improvement.
Technical competencies remain fundamental, with automation and robotics knowledge becoming increasingly critical for enhancing efficiency and production output. Talent must understand how to operate, maintain, and optimize automated systems while ensuring quality standards and safety protocols. Similarly, data analysis capabilities have become essential, as modern manufacturing generates vast amounts of information from sensors and machines that require interpretation for process optimization and strategic decision-making.
Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) software proficiency represents another crucial skill set, enabling talent to participate in product development and production planning processes. Technical troubleshooting abilities ensure smooth production flow and minimize downtime, directly impacting operational efficiency and cost management.
However, the emphasis on technical skills is increasingly being balanced by the recognition of soft skills’ importance. Companies are adopting hiring philosophies that prioritize willingness to learn, strong work ethic, and growth mindset over traditional manufacturing experience. This approach reflects an understanding that while technical skills can be taught, fundamental attitudes toward learning and improvement are more difficult to develop.
The combination of technical and soft abilities creates a workforce capable of adapting to rapid technological changes while maintaining high performance standards. This skill integration is particularly crucial in sectors experiencing rapid technological advancement, where talent must continuously update their capabilities while maintaining operational excellence.
Future Outlook and Strategic Implications
The current hiring trend in India’s manufacturing sector represents more than a temporary market adjustment, it signals a strategic repositioning for long-term competitiveness. The sustained hiring intent during a period of modest growth indicates confidence in India’s manufacturing future and recognition that talent acquisition and development require sustained investment.
Technological advancements, including artificial intelligence and advanced automation, will continue reshaping the sector, creating new job categories while transforming existing roles.
The geographic concentration of hiring in technology-enabled cities like Bangalore and Chennai reflects the integration of traditional manufacturing with digital capabilities, creating hybrid roles that combine production expertise with technological sophistication. This integration positions Indian manufacturing for participation in global value chains that increasingly demand both operational excellence and innovation capabilities.
As India’s manufacturing sector continues its journey toward higher GDP contribution,, the current emphasis on permanent hiring and skill development will prove crucial for sustaining growth momentum. The companies making these investments today are positioning themselves ahead in tomorrow’s manufacturing landscape, where success will depend on having the right talent with the right skills at the right time.