The country’s robust digital infrastructure and the emergence of the remote work culture over the past 18 months have led to a surge in cross-state and cross-border hiring.

According to the Skills Report, almost 40% of the country’s employable talent is in the 18 to 21 age range. The article discusses the need to close the skills gap that currently exists and the need to upskill the talent pool in the country. Forecasts state that by 2023, half of India’s youth will have jobs.

You may get all the information you need from EOR Services regarding your expansion plans in India, including information on talent availability and recruiting expenses. Chat with an expert in EOR Services right now!

Overview of India

India, boasting a staggering population of 1.39 billion, stands as a demographic giant on the global stage. Reflecting its economic might, the Gross Domestic Product (GDP) of the nation reached USD 2.86 trillion (INR 195.68 lakh crore) in the fiscal year 2021.

Examining India’s economic trajectory, the years leading up to FY17 witnessed an impressive growth rate of approximately 8.3%. According to the International Monetary Fund (IMF), India is positioned to regain its status as the fastest-growing major economy in 2023. Projections indicate a robust GDP growth of 6.1% in 2023, followed by a further ascent to 6.3% in 2024.

The landscape of opportunity within India is expansive, with the McKinsey Global Institute highlighting the imperative need to generate around 90 million jobs in the non-agricultural sectors between 2023 and 2030. These projections align with estimates suggesting that a net employment rate increase of 1.5% is essential to sustain GDP rates within the formidable range of 8% to 8.5%. As India charts its economic course, the emphasis on job creation and sustained growth underscores the nation’s commitment to fostering a thriving and inclusive economic landscape.

A Brief Glimpse of Industries

The Government of India (GOI) actively encourages international corporations to establish subsidiaries and facilities within the country, fostering an environment conducive to economic growth through initiatives like Make in India and Digital India.

As part of this effort, the GOI plans to invest USD 36 billion, equivalent to INR 2.65 lakh crores, in key industries such as housing, construction, tourism, and aviation, with the aim of creating a substantial number of job opportunities.

Complementing these efforts is the progressive production-linked incentives (PLI) scheme, reflecting the GOI’s commitment to inject around USD 27 billion into the economy over the next five years, specifically targeted for job creation.

The Make in India initiative strategically elevates the manufacturing sector, aiming to contribute approximately 25% to the national GDP. Simultaneously, the GOI actively fosters growth in the digital sector, emphasizing digital literacy, digital service delivery, and strengthening nationwide digital infrastructure.

India’s digital landscape showcases significant progress, with an impressive average download speed of 53.90 Mbps on fixed broadband, as per the Speedtest Global Index. Concurrently, the upload speed on fixed broadband stands at 50.75 Mbps.

The Hurun Report highlights the diverse economic tapestry of India, identifying the top 10 industries as pharmaceuticals, software and services, fast-moving consumer goods, chemicals and petrochemicals, automobiles and auto components, construction and engineering, financial services, food and beverages, textiles, apparel and accessories, and real estate.

For companies looking to expand and tap into India’s dynamic workforce, conducting targeted research on industries conducive to remote work is crucial. EOR Service’s experts can provide invaluable assistance in navigating these intricacies, facilitating a seamless expansion process, and maximizing the potential of hiring remote talent in specific locations across India.

Hiring Cost

An essential factor to take into account for your expansion goals is the price of hiring local workers in India. The cost of living, rent, food and grocery prices, local purchasing power, and other variables all affect hiring costs in any given region. For example, when hiring a worker in Mumbai or Gurgaon, you need to consider the real costs of recruitment. Among these costs are:

• Costs related to recruiting through hiring, screening, and interviews
• Onboarding costs
• Opportunity costs

Cost of Living in India

The following is the total cost of living in India:

• In India, a single person’s monthly expenses are projected to be INR 24,167.77 (not including rent). This comes to $315.64 USD.
• A family of four is expected to spend, minus rent, INR 84,088.68 per month. This comes to $1098.24 USD.
• The average rent in India is around INR 11,910.85 (or USD 155.56) for a one-bedroom apartment located in the city center, and approximately INR 7,464.35 (or USD 97.49) for an apartment located outside of it.

Cost of living by city

City	Cost of Living Index	Rank
Gurgaon	33.19	1
Mumbai	30.71	2
Chandigarh	30.15	3
Navi Mumbai	30.01	4
Noida	29.04	5
Goa	28.63	6
Bangalore	28.04	7
Thane	27.97	8
Kalyan	27.92	9
Delhi	27.89	10

Detailed Break-up of Cost of Living in by City

City	Rent Index	Average Rent	Groceries Index	Restaurant Index	Local Purchasing Power
Gurgaon	10.51	INR 30,000	33.35	28.08	70.65
Mumbai	23.12	INR 45,000	31.27	25.82	40.09
Noida	6.63	INR 15,000	28.36	23.18	51.11
Bangalore	8.98	INR 17,000	30.28	19.81	72.10

Salary Structure for Various Roles in India

Software developers	INR 3,580,792 (USD 46766.79)
Software engineers	INR 265K to INR 953K (USD 3461.02 to 12446.62)
Programmers	INR 147K to INR 504K (USD 1919.89 to 6582.47)
DBA	INR 726K – INR 2M  (USD 9481.89 to 26118.02)
Project managers	INR 123K – INR 745K (USD 1699.04 to 10290.95)
Remote engineers	Average INR 352K (USD 4862.3)

Employment Laws in India

• The Employees Provident Funds & Miscellaneous Provision Act of 1952 mandates that employers furnish insurance, pension funds, and provident funds.
• The Industrial Disputes Act of 1947 guarantees industrial harmony and peace. It offers a process for investigating and resolving disputes at work.
• The Maternity Benefit Act of 1961, which grants leaves before and after childbirth, governs women’s employment.
• Employment contracts between two parties are governed by the legally binding Indian Contract Act of 1872.
• The Shops and Commercial Enterprises Act regulates the operations of all commercial enterprises, including shops, offices, and more.The 1948 Factories Act sets rules for factory health and safety.

How Can EOR Services Help You in Hiring in India?

Recruitment in India is a complicated procedure that requires a thorough awareness of local laws, hiring customs, employment costs, and living expenses in different areas. As a one-stop shop that can manage all aspects of hiring, EOR Services joins the team. It gives you the freedom and time to focus on your expansion goals without worry.

Consult an expert in EOR Services to find out more.