Strategy And Planning

Tier-2 cities outpace metros in hiring growth as Indias talent map shifts

June 18, 2026
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< />For years, the hiring playbook was very simple: if you wanted serious <a id=” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/131818506.cms” height=”442″ href=”http://hr.economictimes.indiatimes.com/tag/tech+talent+in+india” keywordseo=”tech-talent-in-India” loading=”eager” source=”keywords” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” type=”General” weightage=”20″ width=”590″></img>tech talent in India, you looked in Bengaluru, Hyderabad, Pune, or Chennai. Those cities built ecosystems, groomed pipelines, and absorbed generations of engineering graduates. But a growing body of data now suggests that the next chapter of India’s hiring story is being written somewhere else entirely.</p> <p>Tier-2 cities recorded 24 percent year-on-year (Y-o-Y) hiring growth in May 2026, more than double the 12 percent posted by Tier-1 cities in the same period, according to the foundit Insights Tracker exclusively shared with . </p> <p>That gap is no statistical blip. It reflects a structural shift in how companies, particularly Global Capability Centres (GCCs) and large enterprise firms are thinking about where they build their workforces.</p> <p>Coimbatore emerged as the fastest-growing hiring market in 2025 and has not looked back. Visakhapatnam and Indore topped charts for raw growth, with IT hiring in each city jumping nearly 50 percent year-on-year. Jaipur is gaining traction as a fintech and analytics destination. Ahmedabad, Nagpur, Chandigarh, and Kochi round out the list of cities that companies now treat not as backup options, but as deliberate strategic plays.</p> <p>Niharika Mohan, CHRO, Schneider Electric India said that at Schneider Electric, over 30 percent of their workforce comes from these markets and as the business expands across locations in India, especially in sales, service and manufacturing, many of these roles are increasingly being anchored in Tier-2 and Tier-3 cities, which are fast becoming our growth engine. </p> <p>At the same time, their manufacturing footprint in locations such as Ahmednagar, Vadodara and Coimbatore, further reinforces how Tier-2/3 India is integral to both industrial and knowledge-led roles.</p> <p>Meanwhile, the metros are hardly standing still. Bengaluru led major cities with 11 percent YoY hiring growth, followed by Mumbai at 7 percent, Hyderabad at 6 percent, and Chennai at 5 percent. But the direction of travel is clear: the gap between the metropolis and the emerging city is narrowing, and in some niche skill categories, it has already closed.</p> <p>On the same, Ruhie Pande, Group CHRO and Chief Marketing Officer for Sterlite Electric, Resonia, and Serentica Renewables pointed out that over the next few years, Tier-2 India will also serve as an essential white-collar talent engine. As infrastructure investments and energy transition timelines accelerate, tapping into these regional pools is no longer an optional sourcing strategy; it is an operational prerequisite for building diverse, resilient, and execution-ready teams.</p> <p>On an annual basis, even Godrej Agrovet (GAVL) creates employment opportunities for over 500 candidates across our value chain, in Tier-2 cities and beyond. Just last year, GAVL hired 130 campus talents and set them up for success across various frontline roles PAN India. </p> <p>Pooja B Luthra , Group CHRO Trident Group added that rather than viewing Tier-2 cities merely as talent sourcing locations, we see them as talent development ecosystems. Through initiatives such as Takshashila, structured learning pathways, apprenticeships, technical capability building, and leadership development programs, we focus on creating opportunities for individuals to learn, grow, and build meaningful careers close to their roots. </p> <p><strong>Fastest growing skills area <br /></br></strong><br /></br>Data Analytics and Data Engineering is the fastest-growing skill area in Tier-2 cities, up 38 percent YoY. AI and ML Engineering is close behind at 36 percent, driven by generative AI adoption and the scramble for prompt engineers, profiles that remain among the hardest to source anywhere in the country. </p> <p>Cloud Computing has grown 32 percent, with GCC expansion and cloud-native transformation as the primary drivers. Cybersecurity is up 31 percent, with the DPDP Act creating fresh urgency for compliance-ready professionals..</p> <p>The non-tech story is equally compelling. Healthcare and Clinical Technology has surged 32 percent on the back of telemedicine expansion and hospital infrastructure growth. Project Management and Leadership roles are up 31 percent as companies build strategic operations beyond the metros. Manufacturing and Industrial Engineering, driven by EV and defence investments, is growing at 28 percent. Supply Chain and Logistics is up 27 percent, powered by the e-commerce and warehousing boom.</p> <p><strong>Talent Gap<br /></br></strong><br /></br>While, the skills are in demand but so exists a gap. The talent gap for Data Analytics roles in Tier-2 cities stands at 60 percent. For AI and ML, it is 53 percent. Cloud Computing sits at 44 percent, Cybersecurity at 45 percent. Java and Full-Stack development, the more established of the skill areas, still has a 30 percent gap.</p> <p>Mallika Mutreja, Chief Human Resources Officer, Godrej Agrovet also added to the same and mentioned that while specialised capabilities such as AI and data remain more concentrated in metros, this is gradually evolving as digital exposure deepens and institutions strengthen, positioning Tier 2 markets to contribute more meaningfully over time</p> <p>Experts said that this gap is not a sign of failure. It is, paradoxically, the opportunity. Companies moving early, investing in campus pipelines in Coimbatore and Chandigarh, building upskilling partnerships in Indore and Jaipur, setting up GCC footprints in Visakhapatnam and Kochi are securing a significant first-mover advantage. Organisations that wait for talent pools to mature before they enter are likely to find the window much narrower. </p> <div> <div aria-label=

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