India’s AI Job Market to Grow 20% as Companies Embrace New-Age Tech Skills

The tech industry, including the AI job market in India is set to experience a 20% increase in jobs this year, Analytics India Magazine reported. The growth will be driven by a 75% increase in demand for cloud computing, artificial intelligence, and cybersecurity talent. This is according to a report released by advanced AI-powered hiring firm, Instahyre.

Job Market Shifts

The Instahyre Tech Salary Index 2025 report shows that remote work and the gig economy continues to influence the job market. The company projects that this kind of hiring will shape the future of AI jobs in India, as it will account for 10% of the job market growth this year.

Overall, professionals with DevOps skills remain in high demand even as AWS-related compensation rises by close to 10% across all cadres. Even so, salaries for entry-level workers in this profession remain low as those for experienced talent show a steady increase.

“The findings from Instahyre Tech Salary Index 2025 indicate a clear evolution in India’s tech hiring landscape. As organizations adapt to the changing demand for skills and embrace newer hiring strategies, professionals who invest in upskilling and specialization will remain at the forefront of career growth,” Instahyre Co-founder Sarbojit Mallick said in a statement.

The tech jobs growth 2025 report also points to shifts in staff compensation patterns, rising consideration for specialized skills, and changes in hiring trends. The report also suggests that close to 40% of India’s workforce will have to upskill in order to maintain competitiveness in the changing job market.

India’s Tech Hubs

Instahyre’s tech jobs report highlights the shift toward skill-based hiring. Demand for AI roles in India has risen significantly. Most tech companies are choosing to hire artificial intelligence and deeptech talent over conventional hiring that prioritizes diversity. This change is largely driven by the growing influence of space tech, cybersecurity, and digital economy startups.

According to Instahyre, Bengaluru maintained its lead as the leading tech hub in India. 35% of skilled tech professionals work in this city. Hyderabad and Delhi-NCR came in second, accounting for 20% of tech jobs in India. The report highlighted the emergence of Tier-2 tech cities like Jaipur, Chandigarh, and Indore that are increasingly attracting talent beyond the conventional metro areas as they offer flexible remote work.

India’s product sector is expected to experience a new hiring rebound with up to 2 million fresh graduates acquiring new-age tech skills expected to get into the job market by end of 2025. Even so, entry-level tech professionals may have to work for lower salaries while experienced professionals get higher earnings

Highlight of Salary Gaps

The report highlights salary gaps between experience levels. For instance, salaries for entry-level front-end developers who have less than 5 years of experience dropped by ₹1.5 LPA. Those who have more than six years of experience in this field saw their salaries rise by about ₹4 LPA.

Instahyre observed a similar pattern in emerging fields like natural language processing, machine learning, and data science within the AI job opportunities market in India. In this field, salaries for entry-level professionals reduced from ₹8.4 LPA to ₹6.3 LPA last year. Experienced mobile developers, on the other hand, saw their compensation rise by ₹5 LPA. For backend mobile developers, Python is among the top paying skills in the country. Salaries for these professionals doubles after every five years.

Significant growth was also evident in Java development with developers rising from ₹4.74 LPA for entry-level professions to ₹23.42 LPA for developers with more than 10 years of experience.

In the cybersecurity field, Instahyre reported steady growth across different roles. Network security experts with more than a decade of experience earn up to ₹30.53 LPA. These high earnings reflect the rising demand and need for cybersecurity.

Increasingly, tech companies are streamlining their hiring processes through automated reminders and use of advanced filters to boost efficiency. Over 10,000 tech companies, including Microsoft, Swiggy, and Google use Instahyre’s hiring platform.