India's Job Market: The Rise of AI and Evolving Salary Expectations

As India's job market evolves, employees seek 20-40% salary hikes, particularly in AI and EV sectors. A recent Adecco India report highlights growing demand for specialized skills in AI, ESG, and cloud computing. Companies prioritize upskilling to enhance productivity and adapt to technological advancements.

India's job market is witnessing an evolution as employees demand substantial salary hikes ranging from 20 to 40 percent. This trend is particularly pronounced in high-growth sectors such as Artificial Intelligence (AI), Electric Vehicles (EV), and engineering, according to a recent report from Adecco India. The rise in salary expectations underscores the increasing demand for specialized skills in these areas.

The Adecco India report highlights a robust hiring demand for niche roles in sectors including Electric Vehicles (EV), Environmental, Social, and Governance (ESG), digital transformation, and cloud computing. Businesses are prioritizing expertise in cutting-edge technologies and sustainability initiatives. Meanwhile, industries like banking, financial services, and IT have managed more stable salary conditions despite the volatile job market. The report emphasizes an evolving workforce outlook where employees seek more than financial rewards, including meaningful work and flexible conditions.

Additionally, the growing influence of AI is transforming workplaces. Rather than seeing it as a threat, AI is viewed as a growth driver, leading to significant investments in upskilling. Companies are focused on enhancing technical expertise through AI-powered learning platforms, certifications, and leadership training. Skills in ESG, automation, and machine learning are increasingly sought as businesses respond to India's dynamic economic landscape. Notably, India ranks among the top AI adopters in the Asia-Pacific region, with 42 percent of businesses integrating AI solutions. Cloud computing and AI-powered automation are reshaping traditional roles and creating new career paths.

Organizations now consider AI as a productivity tool, underpinning the need for employees to remain technologically savvy. The shift in workforce expectations demands businesses to prioritize upskilling and flexible work environments to stay competitive. Karthikeyan Kesavan, Director & Head of Permanent Recruitment at Adecco India, stressed the need for strategic hiring and skills-focused compensation structures amidst a rapidly changing talent landscape. As AI, cybersecurity, and cloud expertise gain prominence, competitive salary packages and upskilling opportunities are crucial to attracting and retaining top talent.

(With inputs from agencies.)