The landscape for entry-level recruitment in India is undergoing a dramatic structural shift. According to the latest 2026 reports from TeamLease Digital, hiring for freshers in Science, Technology, Engineering, and Mathematics (STEM) is projected to decline significantly this fiscal year. While 220,000 STEM freshers were recruited in FY25, that number is expected to plummet to just over 150,000—a nearly 30% drop as companies pivot toward leaner, more specialized workforces.

India Inc is no longer hiring for volume; it is hiring for immediate productivity. Industry experts note that the “bar for entry” has been raised. Today, even a fresh graduate is expected to arrive “industry-ready,” with proficiency in:

• Cloud Platforms & Data Pipelines: Essential for modern infrastructure roles.
• Generative AI & LLMs: Non-negotiable for software and product engineering.
• Automation Tools: Required to maintain lean operational efficiency.

Only 70-74% of firms currently plan to hire freshers, down from previous years. Startups, in particular, are leading this “lean” movement. For example, edtech major Leverage Edu has streamlined its headcount from a peak of 1,400 down to 900, focusing exclusively on mission-aligned talent with deep AI capabilities.

Despite the decrease in hiring volume, compensation for those who do make the cut is rising. The “reset” in entry-level tech hiring—moving away from basic coding to AI-adjacent roles—has pushed salaries upward:

• Software & Data Roles: Entry-level pay has jumped to ₹5 lakh annually, up from ₹3.5 lakh in 2020.
• Average STEM Starting Pay: Now stands at approximately ₹4 lakh, compared to ₹3 lakh just a year ago.

This trend underscores a “quality over quantity” mandate. Companies are willing to pay a premium for “Nano-GCC” (Global Capability Centre) talent—small groups of 50-150 experts who drive high-impact innovation rather than managing mass-scale legacy systems.

While Tier-1 metros like Bengaluru (which holds a 43.5% share of tech hiring) remain dominant, Tier-2 cities are emerging as the new hub for freshers. These regions now account for over 20% of India’s STEM employment. In these emerging hubs, 52% of all STEM jobs are targeted at the 0–3 years experience band, offering a glimmer of hope for new graduates willing to relocate.

Key Highlights:

• Hiring Slump: STEM fresher hiring is expected to fall from 220,000 to 150,000 this fiscal year as companies avoid volume-based recruitment.
• Skill Mandate: Employers now demand immediate proficiency in AI, cloud, and data analytics, moving away from traditional “train-on-the-job” models.
• Rising Salaries: Despite fewer jobs, average entry-level STEM salaries have risen to ₹4 lakh–₹5 lakh, reflecting the higher technical bar.
• Tier-2 Growth: While metros prioritize experienced lateral hires, Tier-2 cities have become the primary destination for fresher intake, holding a 52% share of junior roles.