New Delhi [India], June 25 : The hiring in India's Micro Small and Medium enterprises has increased by 25 percent in the financial year 2026 (FY26) and continues to maintain momentum into FY27, according to a latest report by talent platform Apna.
On MSME Day, Apna, India's leading AI-native early-career talent platform shared insights from their platform analytics on hiring, workforce participation and skill demand across its platform.
The analysis suggests that India's MSMEs are entering a new phase of growth, where businesses are not only hiring more but also hiring differently as they expand, adopt digital capabilities, and seek a more future-ready workforce.
MSME hiring on the platform increased by 25% in FY26 and continues to maintain momentum into FY27.
The growth was broad-based, driven by both more businesses entering the hiring ecosystem and existing employers expanding recruitment. At the same time, demand for jobs requiring AI-related skills grew by 164% in FY26, signalling that MSMEs are increasingly investing in digital capabilities as they scale their businesses.
The analysis also highlights how India's workforce is becoming more geographically distributed. While nearly two-thirds of MSME job demand remains concentrated in Tier-1 city clusters (68% in FY26), reflecting the continued strength of established business centres, workforce participation is increasingly expanding beyond metropolitan markets.
Tier-2 cities accounted for 30% of all applicants in FY26, signalling the growing contribution of non-metro talent to India's formal workforce. Tier-3 markets represent the next significant opportunity.
These markets accounted for nearly 20% of active users but only 5% of applications, highlighting strong workforce interest that is yet to fully translate into formal employment.
Emerging hiring clusters such as Surat, Rajkot, Nagpur and Raipur are gaining momentum alongside established centres including Ahmedabad, Pune, Chennai and Delhi, reflecting the broadening footprint of India's MSME economy.
As businesses scale, the composition of hiring is evolving alongside their growth priorities. Sales & Business Development accounted for 40% of all skills sought by MSMEs in FY26, compared with 36% in FY25, making it the largest contributor to overall skill demand.
Most of the hiring demand remained centred on general-purpose, transferable skills, underscoring the continued importance of customer-facing and business-oriented capabilities that are fungible across industries.
The most in-demand roles included Telesales, Accounting & Taxation, Field Sales and Customer Support reflecting sustained demand for frontline and operational talent as businesses continue to expand.
Commenting on the findings, Kartik Narayan, CEO of Apna Jobs, said:
"India's MSMEs are entering an AI era, with AI skills becoming an important employability factor. The 164% rise in AI skill demand shows that businesses are adopting AI for everyday productivity and hiring. AI is helping MSMEs access tools once limited to larger enterprises, while the rise of Tier-2 and Tier-3 talent is creating a more inclusive workforce ecosystem."
Taken together, the findings suggest that India's MSMEs are entering a new phase of evolution. While hiring continues to grow, businesses are simultaneously expanding their talent pools, adopting new skills and preparing for a more digital operating environment. The data points to an MSME sector that is not only creating employment opportunities at scale, but also reshaping how and where it hires as it adapts to the needs of a changing economy.
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