Haryana, Karnataka, Telangana Are Talent Magnets

Why It Matters

The shift highlights growing regional disparities in India’s talent ecosystem, influencing where companies locate new operations and how states compete for skilled labor. It signals a tightening talent pool for negative‑balance states, potentially affecting their economic growth.

Key Takeaways

• Karnataka gains 74,000 net talent FY 2025‑26
• Haryana adds 26,700 talent, ranking second
• Telangana net gain 25,500, third place
• Only six states remain talent-positive, down from nine
• Techie outflow drops; 43,000 returned last year

Pulse Analysis

India’s talent landscape is polarising, with Haryana, Karnataka and Telangana cementing their status as talent magnets. Their net gains reflect a combination of robust industrial ecosystems, proactive skill‑development policies, and attractive cost structures that enable rapid hiring. Companies seeking to scale quickly are gravitating toward these states, reinforcing a virtuous cycle of investment, job creation and talent inflow. This concentration of skilled workers also raises the stakes for competing regions to revamp education‑industry linkages and improve infrastructure.

Conversely, the talent‑negative states—Tamil Nadu, West Bengal, Kerala, Assam and Andhra Pradesh—are witnessing job losses ranging from 9,000 to 22,000. Factors such as slower bureaucratic processes, higher operational costs, and limited tech‑hub development are eroding their ability to retain professionals. The outflow threatens local economies, reduces consumer spending power, and could deter future foreign direct investment. Policymakers in these regions must address structural bottlenecks, incentivise upskilling, and create conducive environments for emerging sectors to reverse the trend.

A notable counter‑trend is the resurgence of Indian tech talent abroad. While 58,000 engineers left the country last year, 43,000 returned, shrinking the net loss to 15,000—a significant improvement over previous years. This rebound, coupled with cautious optimism about AI’s impact, suggests that Indian firms remain essential partners for global enterprises that lack in‑house AI capabilities. As AI adoption matures, the demand for human‑in‑the‑loop expertise will sustain IT services demand, positioning talent‑positive states to capture a larger share of the evolving digital economy.