India’s job market grew 15% year-on-year in 2025 . Hiring activity rose 5% month-on-month in December 2025 . Artificial Intelligence (AI) emerged as a key driver, with 290,256 AI-linked roles posted throughout the year, according to the foundit Insights Tracker report.
AI Driving Job Market Expansion
AI’s influence on hiring continued to expand in 2025. The foundit report projects AI-linked job roles to increase by 32% year-on-year in 2026 , reaching approximately 380,000 positions.
Tarun Sharma, foundit Chief Product and Technology Officer, stated AI is now central to workforce planning. Future hiring will prioritize specific skills and mid-career professionals. Job growth is anticipated across both major Tier I and emerging Tier II cities.
Industry Growth and AI Adoption
The IT-Software and Services sector held the largest share of AI jobs at 37%. Banking, Financial Services, and Insurance (BFSI) followed with 15.8%, and manufacturing accounted for 6%.
Several sectors also experienced significant year-on-year hiring growth in 2025:
| Sector | Year-on-Year Growth |
|---|---|
| BFSI | 41% |
| Healthcare and Pharmaceuticals | 38% |
| Retail | 31% |
| Logistics | 30% |
| Telecom | 29% |
Geographic Hotspots for Hiring
Bengaluru maintained its lead for AI job postings, holding a 26% market share. The city also recorded a 32% year-on-year rise in AI roles.
Hyderabad showed the fastest growth among Tier I cities at 35%. Tier II cities also saw strong gains. Jaipur led with 40% growth, followed by Indore at 38%, and Mysuru at 36%.