Hiring in India grew 12% year-on-year in January-May this year, led by professional services, manufacturing, BFSI, e-commerce and IT/ITES (IT enabled-services) sectors, according to research from Indian staffing firm Quess Corp published by the Press Trust of India.

The research is based on payroll distribution data collated by its subsidiary Allsec Technologies.

Allsec Technologies CEO Naozer Dalal said, "The current global instability has had a significant impact on industries worldwide. Over the past few months, we have seen companies tightening their belts, but India's hiring prospects have improved from the past year.”

“We anticipate that India's continued investment in crucial sectors like energy and infrastructure will catalyse employment growth in the years ahead," Dalal added.

The data revealed that compared to last year, the professional services industry has doubled its headcount, registering the highest growth. Quess said this directly corresponds to companies increasingly seeking external expertise to expedite business operations while looking to tide over global turbulence.

The manufacturing sector also exhibited nearly a 50% increase in headcount, with companies experiencing a strong uptick in sales for Indian products, both locally as well as internationally, the research stated.

Meanwhile, the BFSI and e-commerce sectors witnessed robust growth too at 16% each, the report stated.

The BFSI sector in India has remained steady due to Indian banks holding their ground amidst challenges faced by banks worldwide due to factors, such as strong domestic demand, enhanced credit conditions for borrowers, and strengthened solvency and funding, it noted.

The e-commerce sector is also doing well due to the widespread adoption of smartphones, increasing internet penetration, growing access to digital payment systems and the government's push towards digital transactions.

The government's efforts to create a more business-friendly environment and promote foreign investment in the country have also contributed to the sector's growth.

The growth in the IT/ITes sector is muted compared to the previous year when India was coming out of the Covid-19 pandemic.