Over the past decade, India’s job landscape has shifted dramatically. While metros like Bengaluru, Delhi, Mumbai, Hyderabad, and Chennai remain major talent hubs, the country’s next wave of hiring growth is no longer metro centric.
Instead, the spotlight is now on Tier-2 and Tier-3+ cities, fast-growing locations that are transforming into thriving talent ecosystems for technology, manufacturing, pharma, BFSI, aviation, retail, telecom, and more.
According to Taggd’s India Decoding Jobs Report 2026, hiring sentiment in Tier-2 and Tier-3+ India has surged sharply, reflecting a structural shift in how enterprises build distributed workforces. Global Capability Centres (GCCs), large enterprises, and fast-growing start-ups are increasingly expanding outside metros to tap into skilled talent, reduce operational costs, and deepen market reach.
The numbers speak for themselves:
- 40% jump in Tier-2 GCC presence
- 25–35% hiring growth in Tier-2 and Tier-3+ cities
- Rising regional demand across sectors including IT, BFSI, Pharma, FMCG, Energy, Retail, Telecom, and Semiconductor
For job seekers, this means widening access to high-quality employment opportunities without needing to relocate to metro cities. For employers, it signals a new era of scalability, agility, and long-term workforce resilience.
This blog deep-dives into:
- Why Tier-2 cities are the new hiring powerhouses
- Top industries driving job growth
- Emerging talent hubs
- Present and future job roles
- Skills in demand
- What candidates and employers should prepare for
Let’s get started.
Why Tier-2 Cities Are the New Hiring Powerhouses?
Tier-2 cities are becoming hiring powerhouses due to strong digital infrastructure, lower operational costs, expanding GCC presence, and growing talent availability. Companies are building distributed teams to reduce attrition and scale sustainably, while candidates benefit from better work–life balance, career growth, and access to high-quality jobs closer to home.
1. Digital infrastructure expansion
BharatNet, IndiaAI, 5G rollout, and Digital India initiatives have narrowed the divide between metros and smaller cities. Tier-2 locations now have strong broadband penetration, tech-enabled education, and remote-ready talent pools.
2. Lower operational and talent costs
Organizations can reduce operational expenditure by up to 30–40% by expanding to Tier-2 hubs. Lower cost of living also translates into better talent retention.
3. GCC and enterprise decentralisation
GCCs are increasingly building distributed talent hubs. Tier-2 city GCC presence has increased by 40% in just a few years, with roles emerging across R&D, AI, software engineering, analytics, shared services, and more.
4. Government and state-led incentives
Policy support such as skill programs, life sciences clusters, semiconductor parks, logistics hubs, and AI research centres are fueling regional job creation.
5. Rapid consumption growth
Rising disposable income and digital adoption are powering job demand across FMCG, retail, logistics, and e-commerce in Tier-2 and Tier-3 regions.
The result? Tier-2 India is quickly evolving from job-seeking markets into job-creating markets- attracting employers, entrepreneurs, and global investment.
Top Tier-2 Cities Leading Job Growth in India
India’s Tier-2 cities like Indore, Coimbatore, Nagpur, Jaipur, Surat, Lucknow, Bhubaneswar, and Guwahati are emerging as major hiring cities and hubs for industry establishments.
Strong industry expansion, digital infrastructure, and new investments are fueling job creation across tech, manufacturing, BFSI, pharma, retail, and logistics, attracting both enterprises and skilled talent.
| Leading Tier-2 cities | Hiring momentum |
| Indore | BFSI, FMCG, IT, Telecom, Pharma |
| Coimbatore | IT, Telecom, Retail, BFSI |
| Nagpur | IT, Telecom, Aviation |
| Guwahati | BFSI, Logistics |
| Pune | Semiconductor, IT, FMCG |
| Nasik | IT, Energy/Sustainability |
| Surat | BFSI, Retail, Logistics |
| Jaipur | BFSI, FMCG, Retail |
| Lucknow | BFSI, Telecom |
| Bhubaneswar | BFSI, Aviation, Retail |
| Ahmedabad | Telecom, Semiconductor, Retail |
Source: India’s Decoding Jobs Report 2026
Many more Tier-2 cities are now transitioning into important talent hubs as industries diversify from traditional metros.
Industries Driving Job Growth in Tier-2 Cities
Tier-2 cities are seeing rapid job creation driven by IT and GCC expansion, pharma and life sciences investment, BFSI growth, manufacturing scale-up, rising retail and FMCG demand, and logistics infrastructure development. These sectors are transforming regional talent markets and creating diverse opportunities across experience levels.
1. Information Technology (IT) – Tier-2 Hiring Up 53% YoY
The IT sector is one of the strongest growth engines for Tier-2 talent expansion. Remote work, distributed teams, and digital transformation have opened the door for regional hiring in software development, cloud, cybersecurity, AI, and product engineering.
Major hiring hotspots include:
- Coimbatore
- Nagpur
- Nasik
- Pune
Government initiatives like IndiaAI (₹1.17 billion) and Digital India 2026 are further accelerating job creation in regional tech hubs, with a target of 1 million future AI/ML jobs by FY 2026.
Current IT job roles in Tier-2 cities
- Software Engineer
- QA Analyst
- IT Support Specialist
- UI/UX Designer
- Cloud Engineer
- Cybersecurity Analyst
- Database Administrator
- Network Engineer
Emerging IT roles
- AI/ML Engineer
- DevOps Specialist
- AR/VR Developer
- Product Manager – Tech
- Data Scientist
- Business Intelligence Analyst
- Chip Design Engineer
- Semiconductor Fabrication Technicians
As digitisation expands, we can expect a rise in internships, graduate programs, and industry-campus partnerships, especially in engineering and computer science domains.
2. BFSI – Nearly 48% of New Roles from Tier-2 & Tier-3+ Cities
BFSI hiring trends show that recruitment is moving beyond metros, reflecting India’s diverse economic geography and expanding credit markets. Cities like Indore, Coimbatore, and Nagpur are witnessing 15–18% hiring growth, while Surat, Jaipur, Lucknow, and Bhubaneswar report 11–13% increases.
This is driven by:
- Consumer credit expansion
- Insurance penetration
- Digital banking
- Wealth management growth
- Rural and MSME finance
Current BFSI job roles
- Relationship Managers
- Credit Analysts
- Branch Executives
- Loan Officers
- Insurance Advisors
- Risk Controllers
- Customer Operations
Emerging BFSI roles
- Fintech Product Specialists
- Risk Analytics Experts
- Digital Fraud Analysts
- WealthTech Advisors
- Financial Inclusion Strategists
For candidates, the BFSI industry offers strong growth pathways and long-term career stability.
3. Pharma & Life Sciences – India’s Regional Pharma Boom
Pharma hiring is rapidly accelerating in Tier-2 cities. Sun Pharma’s $429 million investment in Madhya Pradesh will generate 2,000+ jobs, while Telangana’s earlier $4.06 billion pharma-linked investments are creating 50,000+ direct roles.
Life sciences clusters are emerging in Tier-2 regions, enabling strong scientific talent supply chains.
Current pharma job roles
- QC/QA Associates
- Plant Operators
- Production Engineers
- Lab Technicians
- Mechanical Maintenance Engineers
Emerging pharma/biotech roles
- Regulatory Science Specialists
- Clinical Data Scientists
- R&D Talent
- Medical Tech Engineers
- Microbiology Analysts
Pharma expansion in Tier-2 cities reflects rising export capacity, manufacturing incentives, and demand for affordable healthcare.
4. FMCG – Hiring Share at 50% Across Tier-2 and Tier-3+ Cities
With rising consumption and digital adoption, FMCG hiring is becoming hyperlocal. Quick commerce and regional manufacturing are pushing job creation in cities like Indore, Coimbatore, and Jaipur.
Current FMCG roles
- Field Sales Executives
- Brand Promoters
- Supply Chain Coordinators
- Plant Technicians
- Warehouse Staff
Emerging roles in FMCH industry
- Local Marketing Specialists
- Customer Analytics Managers
- Demand Forecasting Analysts
- Retail Automation Specialists
- Last-Mile Delivery Tech Leads
Hiring demand will grow significantly as FMCG firms set up full-scale offices in Tier-2 cities for regional operations, marketing, and production.
5. Energy, Core, and Manufacturing – Tier-2 Hiring at 35%
A significant share of the core and energy workforce will be based in Tier-2 and Tier-3 cities, with 35% hiring allocated to Tier-2 markets by FY 26–27.
Current roles
- Electrical Technicians
- Plant Supervisors
- Maintenance Engineers
- Production Managers
Emerging roles
- Renewable Energy Technicians
- Sustainability Design Engineers
- Carbon Compliance Analysts
- Industrial Automation Specialists
Manufacturing growth in Tier-2 India is driven by rising capex investment, engineering talent supply, and growing export ambitions.
6. Aviation – New Airports = New Jobs
New greenfield airports and regional connectivity schemes are fueling aviation hiring outside major metros, as per the Taggd’s India Decoding Jobs Report 2026.
Current aviation roles
- Customer Service Executives
- Baggage Handling
- Airport Security
- Logistics and Fleet Operators
- Maintenance Technicians
Emerging roles
- UAV/Drone Technicians
- Air Navigation System Engineers
- Aviation Cybersecurity Specialists
This sector offers strong opportunities for technical, operations, and service talent.
7. Semiconductor – India’s Next Big Talent Wave
India’s semiconductor workforce will reach 220,000 professionals by 2026, and the sector plans to add 1 million new jobs in the next year.
While design talent is concentrated in Bengaluru, Hyderabad, and Noida, fabrication and ATMP hiring is accelerating in Tier-2 regions including:
- Dholera
- Greater Noida
- Prayagraj
Current roles
- Electronics Engineers
- PCB Technicians
- Equipment Operators
Emerging roles
- Chip Designers
- Wafer Processing Engineers
- Semiconductor Quality Engineers
- Supply Chain Specialists
This sector demands rapid upskilling, especially in semiconductor physics, design automation, and fabrication systems.
8. Telecom – 80,000 New Roles Coming Up
The telecom sector is expanding aggressively across Tier-2 hubs like Indore, Coimbatore, and Ahmedabad.
Current roles
- Field Engineers
- Fibre Technicians
- Backend Operations
- Network Infrastructure Support
Emerging roles
- RF Engineers
- Network Security Analysts
- Cloud + DevOps Specialists
- Data Network Planners
Telecom hiring appetite is especially strong for freshers, supported by steady 5G expansion.
9. Retail, E-commerce & Logistics – Employment Boom
Regional consumption growth is redefining retail hiring. E-commerce and quick commerce are expanding rapidly into Tier-2 and Tier-3+ cities, enabling new job creation across warehousing, delivery, supply chain, store operations, merchandising, and customer service.
Logistics hubs are also emerging in Gujarat, Tamil Nadu, Telangana, and the Eastern states, supported by ports and multimodal parks.
Current roles
- Delivery Associates
- Store Managers
- Warehouse Ops
- Procurement
- Logistics Coordinators
Emerging roles
- Supply Chain Automation
- Route Optimization Analysts
- Digital Retail Tech
- Inventory Forecasting
How Companies Are Hiring for Jobs in Tier-2 Cities?
Companies are adopting structured, data-driven hiring models to scale efficiently for jobs in Tier-2 cities. Instead of ad-hoc recruitment, employers are building distributed talent hubs, leveraging Managed Campus Centres (MCCs) for entry-level hiring, and partnering with RPO and specialised recruitment firms to access pre-vetted, job-ready talent via appropriate details on the right hiring models.
Skills-based hiring, local language capability, and faster time-to-hire are prioritised, while AI-driven talent intelligence is increasingly used to map regional skill availability, optimise compensation, and improve retention.
MCCs help employers:
- Reduce hiring lead time
- Improve skill readiness
- Build entry-level pipelines
- Expand diversity
- Reduce attrition
This model is proving crucial in Tier-2 markets, especially in engineering, IT, BFSI, FMCG, and manufacturing sectors.
Skills in Demand Across Tier-2 India
Across Tier-2 India, employers are prioritising a mix of role-specific technical and digital skills alongside strong behavioural competencies.
High demand spans software development, data analytics, cloud platforms, cybersecurity, engineering, and life sciences operations. Equally important are communication, problem-solving, adaptability, and local market understanding, all key themes explored in our guide on top skills in demand in India.
Technical skills
- Software development
- Cloud platforms
- Mechanical & electrical engineering
- Semiconductor systems
- Embedded systems
- R&D and biotech
Digital skills
- Data analytics
- AI/ML
- Cybersecurity
- Automation
- CRM and product analytics
Business skills
- Customer handling
- Sales and marketing
- Project management
- Financial planning
- Operations management
Behavioural skills
- Communication
- Problem-solving
- Creativity
- Collaboration
- Resilience
Upskilling pathways will be vital, via certifications, internships, ISR programs, apprenticeships, and job shadowing.
Benefits of Tier-2 Jobs for Candidates
Jobs in Tier-2 offer candidates access to quality employment with lower living costs, better work–life balance, and reduced commute stress. Professionals can build meaningful careers closer to home while gaining exposure to fast-growing industries, early leadership opportunities, and long-term stability as regional talent ecosystems continue to mature.
- Lower living expenses
- Better work–life balance
- Proximity to family support networks
- Shorter commute time
- Growing professional exposure
- Stronger social mobility
- Greater career ownership
- Early leadership opportunities
Increasingly, Tier-2 city careers are not a compromise, they are a competitive advantage.
Why Employers Are Expanding to Tier-2 Cities
Employers are expanding jobs in Tier-2 cities to build scalable, cost-efficient, and future-ready workforce models while accessing new talent pools beyond metros. Key benefits include:
- 30–40% lower workforce costs compared to Tier-1 cities
- Strong engineering, IT, and domain talent availability
- Lower attrition and higher employee loyalty, improving productivity
- Access to untapped skill segments across emerging roles and technologies
- Improved gender and regional diversity, supporting inclusive hiring goals
- Better sustainability metrics due to reduced migration and commuting
- Deeper local market intelligence to support regional business growth
Tier-2 hiring enables organisations to build distributed teams that are resilient, agile, and scalable.
Through Taggd’s RPO solutions, companies can identify, assess, and onboard high-quality Tier-2 talent faster using AI-driven talent intelligence, regional hiring expertise, and ready-to-deploy talent pipelines, ensuring the right skills are hired at the right cost, at scale.
The Future of Jobs in Tier-2 Cities
Tier-2 India is now a foundational driver of India’s employment landscape. With the rise of AI, automation, semiconductor manufacturing, digital banking, supply chain expansion, and biotech clusters, hiring momentum will remain strong across:
- Technology
- Healthcare
- Finance
- Electric mobility
- Pharmaceuticals
- Clean energy
- Retail and logistics
- Telecom
- Aviation
- Core industries
By 2026, many Tier-2 locations will operate as highly skilled talent powerhouses supporting India’s global competitiveness across innovation, infrastructure, and digital capability.
Wrapping Up
Jobs in Tier-2 cities are no longer limited to support roles or regional functions. They now represent some of the most advanced, strategic, high-growth opportunities in the country, powered by AI, digitisation, industry innovation, manufacturing investment, and rising consumption.
For employers, Tier-2 expansion is key to building future-ready, diverse, sustainable workforces. For talent, Tier-2 careers offer access to high-quality jobs in hometown ecosystems, without relocation barriers.
Together, this shift represents one of the most significant transformations in India’s workforce story, decentralising talent, opportunity, and innovation.
And this is just the beginning.
Discover more insights, data-driven hiring trends, and expert perspectives in our India Decoding Jobs 2026 report and resources hub to plan your workforce strategy with confidence.
FAQs
Are Tier-2 cities good for jobs in India?
Yes, Tier-2 cities offer strong job opportunities across IT, BFSI, pharma, FMCG, telecom, manufacturing, and logistics. With lower living costs, expanding digital infrastructure, and rising investments, Tier-2 cities now provide high-quality roles with better work–life balance and long-term career growth.
Which Tier-2 cities are best for job growth in India?
Top Tier-2 cities for job growth include Indore, Coimbatore, Nagpur, Jaipur, Surat, Lucknow, Bhubaneswar, Guwahati, Pune, and Ahmedabad. These cities are emerging as talent hubs due to industry expansion, GCC presence, and improved connectivity.
What industries are hiring the most in Tier-2 cities?
Industries driving hiring in Tier-2 cities include IT and GCCs, BFSI, pharmaceuticals, FMCG, manufacturing, telecom, retail, logistics, aviation, and semiconductors. Growth is fueled by regional investments, digital transformation, and rising domestic consumption.
What kind of jobs are available in Tier-2 cities?
Tier-2 cities offer a wide range of roles, including software engineers, data analysts, BFSI professionals, pharma scientists, sales executives, supply chain managers, telecom engineers, and manufacturing specialists. Emerging roles in AI, cybersecurity, digital health, and analytics are also increasing.
Are Tier-2 city jobs suitable for freshers?
Yes, Tier-2 cities are highly suitable for freshers due to growing entry-level hiring, campus recruitment, MCC-driven hiring models, and lower competition. Freshers can find roles in IT, BFSI, telecom, FMCG, manufacturing, retail, and operations with strong learning and growth opportunities.
Do Tier-2 city jobs pay less than metro city jobs?
While salaries in Tier-2 cities may be slightly lower than metros, the overall cost of living is significantly reduced. This often results in better disposable income, improved quality of life, and higher savings for professionals working in Tier-2 locations.
Why are companies moving jobs from metros to Tier-2 cities?
Companies are expanding to Tier-2 cities to reduce costs, access untapped talent pools, improve retention, enhance workforce diversity, and build distributed teams. Tier-2 hiring also supports business continuity, sustainability goals, and faster regional market expansion.
What skills are in demand for Tier-2 city jobs?
In-demand skills include software development, cloud computing, data analytics, cybersecurity, engineering, manufacturing operations, sales, digital marketing, and supply chain management. Strong communication, adaptability, and problem-solving skills are equally important for success in Tier-2 roles.
How can candidates find jobs in Tier-2 cities?
Candidates can find Tier-2 city jobs through company career pages, recruitment partners, RPO-driven hiring programs, campus placements, local job portals, and skill-based hiring platforms. Building relevant skills, certifications, and digital profiles improves visibility to employers hiring in regional markets.
Partner with Taggd to Build Your Tier-2 Workforce Strategy
Whether you’re scaling across Tier-2 cities or hiring specialised talent for emerging industries, Taggd is your strategic recruitment partner.
We bring:
- AI-powered talent intelligence
- Deep domain expertise across 30+ industries
- Distributed hiring network across India
- MCC hiring models
- Diversity and leadership hiring support
- Faster turnaround times
- Cost-efficient hiring at scale
Explore our solutions:
- RPO: Build workforce agility and scale in Tier-2 markets
- Executive Search: Hire CXO and senior leaders for new regional hubs
- Consulting: Make data-driven hiring decisions with talent market insights
Connect with Taggd today and shape the next chapter of India’s workforce evolution.
