NextFin news, India’s IT industry saw a 2-3% decline in hiring this quarter, as reported on Sunday, September 14, 2025, in India. This slowdown is attributed to increased investment in artificial intelligence (AI), global economic uncertainties, and tariffs imposed by the United States.
According to the Financial Express, six major IT companies, including Tata Consultancy Services (TCS) and Infosys, collectively hired only 3,800 employees during this quarter. This represents a nearly 72% drop compared to the March quarter of 2025.
The decline in hiring is also linked to a 50% tariff imposed by the Trump administration on Indian IT exports, which has contributed to economic uncertainty impacting the sector. Additionally, the shift towards AI and automation is reducing demand for legacy technology roles.
A report by The Economic Times highlighted a 10% dip in overall hiring between July and August 2025, with legacy tech jobs declining by 2-3%. However, demand for specialized skills in AI and remote work roles has either increased or remained stable.
By the end of August 2025, there were approximately 43,000 openings for tech roles in India, which is 24% lower than the same period in 2024 and 41% lower compared to September 2022, according to data from Xpheno cited by The Economic Times.
Across various sectors including product firms, startups, global capability centers, and non-tech companies, there were over 100,000 active tech job openings as of August 2025. This figure is 1% lower than the previous month and 24% below the previous year’s numbers.
Industry experts predict that the overall hiring demand in India’s IT sector will remain sluggish in the near term due to these ongoing economic and technological shifts.
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