India Tech Hiring Hits 28-Month Low as Active Job Demand Falls 17% YoY

India’s technology sector is facing its sharpest hiring slowdown in more than two years, with active tech job demand falling to a 28-month low in June, according to a new report by Xpheno.

The report estimates 93,000 active technology openings in the country, down 17% from a year earlier and 14% lower than May, marking the steepest month-on-month decline recorded in the past 12 months.

The report attributes the downturn to multiple developments in the United States, a key market for India's technology services industry, which have dampened hiring sentiment across technology cohorts. According to the findings, active tech demand has now fallen to levels last seen in January 2024 and is 22% below the peak recorded in March 2026.

The hiring slowdown has been broad-based. Full-time technology openings declined 15% month-on-month to 68,000, while entry-level openings fell 23% from May and 44% compared to June 2025. IT services, the largest consumer of technology talent, recorded a 16% month-on-month decline and a 31% year-on-year drop in active demand.

In contrast, global capability centres (GCCs) continued to show resilience. Active tech demand from GCCs stood at 17,000 openings, up 31% year-on-year despite a modest 6% month-on-month decline.

The report also highlighted concerns around the potential return of Indian technology professionals from the United States amid uncertainty surrounding H-1B visa holders. It noted that increasing repatriation of technology talent could place additional pressure on an already weak domestic job market.

Commenting on the trend, Co-Founder Kamal Karanth said, “Uncle Sam spooks Indian Tech Jobs market… active demand hits 28-month low.”

“Indian tech sector’s active talent demand has been hit sharp and hard by multiple unexpected developments in and from the USA. Overall active tech talent demand is on a race to the bottom again, with June’s demand outlook hitting a record 28-month low. The negative start to the new Fiscal 2027, post March 26, seems to continue further and intensify going further into the first quarter,” he added.

The report noted that technology hiring has remained subdued over the past five quarters, with the sector now accounting for 44% of India's total active job demand, marking the third consecutive month that its share has remained below the 50% threshold.