The salaries in India are expected to increase by 9 percent in 2026, according to AON’s annual salaries and a 2025-26 survey. The dropping of the report by 9 percent for 2026 is a slight increase in actual salary growth by 8.9 percent observed in 2025, even with the slowdown in global economic growth.

Despite the opposite winds, the Indian economy is still flexible, supported by strong local consumption, investments and political measures.

The increases in salaries in industries are expected to differ, as real estate/infrastructure companies and non -banking financial companies (NBFCS) witnessed the highest increases in 2026, according to the study. “It is expected to continue to manufacture cars/car manufacturing, engineering design services, retail and life sciences, with slightly higher salaries in salaries compared to other sectors in 2026, reflecting the continued investment in critical talent complexes.”

Robank Chaudhry, partner and bonus partner, investment leader at Roopnk Chaudhary, partner and bonuses, infrastructure investment leader, said the growth story in India is supported by infrastructure investments.

“Our poll shows that the main sectors such as real estate and NBFCs lead the road to investing talent and that companies take a strategic compensation approach to ensure sustainable growth and the stability of the workforce, even amid global uncertainty.”

The study showed that the total drain rates decreased to 17.1 percent in 2025, a decrease from 17.7 percent in 2024 and 18.7 percent in 2023. She added that the workforce became more settlement, companies are in a good situation to invest in targeted inquiry and development programs, ensuring that they can build a flexible talent pipeline and prepare for future work needs. Amit Kumar Autwani, assistant partner, talent solutions in India in AON, stated that modern tax reforms are working to transform the commercial scene in India by stimulating demand and empowering local consumption, especially for the consumer goods and cars sectors. “Simple compliance and enhanced tax rates are competent. Companies that are compatible with reward strategies with these changes will be better in their position to attract the best talents.”