While the Indian economy continues to register a somewhat slower growth with a gross domestic product (GDP) growth rate of 7 per cent, the job market seems to be experiencing a new high. In a survey on hiring trends recently released by India’s leading job portal, it was stated that hiring activities has increased considerably and over 77 percent of employers are of the opinion that several new jobs will be created in the coming six months.
The findings are based on responses from over 1,300 recruiters and consultants across more than 20 industries. Around 51 per cent of the respondents anticipate that most new jobs would be at the middle management level. About 51 percent of those surveyed opined that new jobs would be created apart from replacement hiring in the next six months.
Explained below are the top 5 sectors where hiring activity will be the highest in the next six months
Some of the major sectors that would witness a rise in the percentage of include IT, ITeS, Retail, BFSI, Automobile and Tourism/ Hospitality industry. Let’s explore them in details:
- Information Technology/Enabled Services (IT/ITeS)
In the coming six months, IT/ITeS will continue to remain the dominant employer within the Indian job market. The industry clocked revenues of over USD 146 billion in 2015 showing a growth of 13% over the last year and contributed over 9.5% to the total GDP of India. The sector leads the pack in services sector by employing nearly 3.5 million professionals.
With companies focusing more on digitization, nearly a million jobs are expected to be created in the coming six months. In the words of Alka Dhingra, Assistant General Manager, TeamLease Services, “With companies focusing on technology and digitisation, the hiring focus has shifted from scale to skill”. This acquisition of skills is expected to be the game changer in the field of IT. The latter half of the year will see a rise in skills such as cloud services and big data, and profiles like that of digital marketing is expected to create nearly 80000 jobs.
- Banking and Financial Services Industry (BFSI)
The IT industry is followed by the Banking and Financial Services Industry (BFSI) that happens to be the second largest employer in India Showing a substantial growth rate on a yearly basis, the BFSI contributed 6% to India’s GDP in 2015. The size of banking assets in India touched US$ 1.46 trillion in November 2015 and is expected to grow manifolds to US$ 28.5 trillion by 2025.
In August 2015, the Reserve Bank of India (RBI) gave green signal to 11 entities for setting up payments and further liberalized the sector by granting ten more licenses to small finance banks in September. Needless to say that these entities went on to become the highest grossing employers and in the coming six months will continue with their hiring spree. If you are already serving in this sector, 2016 have to be one of the best years in your professional career. Be ready to be hunted down by multiple employers from within the industry.
- Retail Sector
Over the past one and a half decade, India’s retain segment has grown manifold and has turned out to be a potential employer. Its overall size is estimated to be INR 31 trillion (US$534 billion) in 2013-14 with a CAGR of 15% which was way higher than the growth of the country’s GDP. Going forward the sector is likely to witness a CAGR 12–13 percent which would be worth INR 55 trillion (US$ 948 billion) in 2018–19. With such a projected growth rate, the sector makes for a potential employer. Now with the government opening up foreign direct investment (FDI) in retail, the sector is not only poised for a rapid growth but will also create thousands of jobs. International players like Tesco, Walmart and IKEA have already leveraged on this and have forayed into the Indian retail landscape. Needless to say that these new companies will be definitely looking towards hiring new employees. The top job markets for retailing include Mumbai, Delhi/NCR, Bengaluru and Hyderabad, followed by Jaipur, Surat and Ahmedabad.
- Hospitality/Travel and Tourism Sector
The travel and tourism sector holds strategic importance in the Indian economy providing several socio economic benefits. Provision of employment, income and foreign exchange, development or expansion of other industries such as agriculture, construction, handicrafts and so on. The sector contributed to nearly 7.5% to India’s GDP in 2015 and reports suggest that the industry is poised for more substantial growth, leading to the creation of nearly 25 million jobs by the end of 2016.
While the government is all set to boost tourism through the help of technology (launching of Incredible India app), the country has also witnessed an upsurge in medical tourism as well. Cost factor and availability of accredited facilities have led to the emergence of India as medical tourism corridor. This particular segment is expected to grow from its current size to US$ 3 billion to nearly US$ 8 billion by 2020. Needless to say that those who are already in the industry will be experiencing a new high and jobseekers will be able to find scores of employment opportunities in the sector.
- Automobile Industry
The Indian automobile industry has seen interesting dynamics in recent times with the effect of the global downturn, followed by recovery in domestic demand. Though the industry has been a little sluggish, it contributes more than 45 percent to the manufacturing GDP and more than 7% to the country’s overall GDP. According to the Automotive Mission Plan 2016-26 prepared jointly by the Society of Indian Automobile Manufacturers (SIAM) and the Government of India, the sector has the potential to generate up to $300 billion in annual revenue by 2026 and create 65 million additional jobs.
After the World Health Organization (WHO) rated India has having some of most polluted cities in the world, the government has taken initiative to phase out all commercial vehicles that are more than 15 years’ old. If implemented properly nearly 3 million vehicles will be off the road, leading to the demand of more commercial vehicles. This would imply a greater demand for workforce in the industry, thus leading to more job creation.
So, if you are looking for a job or for change of job, now you know which all sectors to focus on, keeping in mind your qualification and experiences.
Sources: Economic Times and KPMG