This growth is driven by a recovery in project activity, semiconductor-related expansion and the launch of Industry 4.0 capabilities.
But the biggest gains in salary don’t necessarily go to the roles one might expect.
Project engineers drive salary growth
Project engineers are expected to receive the highest salary increase at 10.7%, according to the report. They are followed by EHS officers and site engineers at 10.1% each, while mechanical design engineers are expected to receive a 9.9% increase.
The numbers indicate a growing demand for professionals who can keep projects running, ensure workplace safety and compliance, and bring specialist engineering capabilities to increasingly complex industrial processes.
As companies expand their manufacturing capacity and invest in new infrastructure and technology, the value of professionals who can execute projects efficiently and safely has become more important.
Engineering trumps IT
At the career level, engineering stands out as the strongest area of salary growth in this sector, with projected increases of 9.9%.
It is followed by the IT sector at 9.8%, while the Finance sector is expected to see salary growth of 9.5%.
This trend reflects the extent to which industrial processes have changed. Technical implementation is increasingly integrated with digital systems, automation and more stringent cost management, creating demand for specialists who can combine engineering expertise with the needs of modern, digitally-enabled operations.
Gurgaon and Coimbatore lead salary growth in the city
Location also appears as a factor in salary growth.
Gurgaon leads city-level salary increases in the MEI sector at 10.9%, followed by Coimbatore at 10.8%.
Hyderabad and Pune are expected to register salary increases of 10.1%, while Vadodara follows with 9.9%.
The concentration of salary growth in these cities reflects the continuing importance of industrial clusters, industrial ecosystems, and engineering-led expansion.
Specialized skills gain value
Salary forecasts also indicate a broader shift in what employers are willing to pay.
As manufacturing and infrastructure projects become more complex, companies place greater value on specialized capabilities that combine technical expertise with strong implementation skills.
The growing demand for project engineers, EHS professionals, site engineers and mechanical design engineers reflects the importance of delivering projects efficiently, safely and at scale.
MEI’s projected 9.4% salary growth reflects a sector moving from “recovery to execution,” said Balasubramanian A., senior vice president of TeamLease Services.
“The premium is increasingly shifting toward professionals who can translate capital investments into operational results, whether on the plant floor, at the project site or through digitally-enabled engineering systems,” he said.
He added that as industrial expansion deepens, enterprises that invest in specialized engineering and implementation capabilities will be better positioned to build long-term competitiveness.
The findings are based on TeamLease’s Jobs and Salaries Report for FY 2026-27, which analyzes projected salary growth across 23 industries and 20 cities in India. The study covers entry-level roles and provides a forward-looking look at compensation trends across industries, functions and locations.
