India's Manufacturing, Engineering and Infrastructure (MEI) sector recorded a Net Employment Change of 6.6 per cent for HY1 FY2026-27 up from 5.5 per cent in prior year, a report said on Tuesday.

Around 70 per cent of employers plan workforce expansion as hiring intent has strengthened and the sector ranks among the top three industries by hiring intent nationally, the report from TeamLease Services said.Balasubramanian A, Senior Vice President, TeamLease Services, said that MEI sector has crossed the recovery phase and the high NEC reflects sustained investment pipelines across semiconductors, clean energy and advanced manufacturing.The acceleration reflects a build-up in industrial investment cycles and policy-led momentum, with semiconductor investments in Gujarat, Tamil Nadu and Karnataka expected to generate around 1 million jobs across fabrication, assembly, testing, marking, and packaging (ATMP), chip design and supply-chain functions by 2026-28. .

"The National Manufacturing Mission's integrated push across clean-tech manufacturing, semiconductor ecosystem development, and PLI frameworks is supporting structured talent creation across the value chain," the report said.The firm said that industry 4.0 adoption reshapes demand towards higher value, digitally-enabled roles across plant operations and engineering design.Plant engineering, automation engineering, project management, ATMP operations, and sustainability-linked manufacturing roles remain core demand areas.Based on a survey of 1,268 employers across 23 industries, the report said that engineering as a function reflects execution continuity, with 33 per cent of employers planning growth and 46 per cent maintaining stable headcount, indicating sustained capex-driven activity rather than speculative hiring.

Chennai leads city-level expansion intent at 24 per cent, followed by Pune at 20 per cent and Bengaluru at 18 per cent. In Pune hiring momentum is supported by proximity to manufacturing clusters and engineering R&D ecosystems.Tamil Nadu, Maharashtra, and Gujarat continue to anchor manufacturing employment generation through automotive, semiconductor, and EPC project pipelines.The report projected MEI sector salary increments for FY2026-27 at 9.4 per cent, ahead of IT at 8.9 per cent, banking at 8.8 per cent, and insurance at 8.7 per cent. Chennai and Pune lead salary increments at 9.8 per cent each.