India's flexi workforce projected to grow 12.6 pc annually, reach 9.16 mn by FY27: Report

New Delhi, Sep 19 (IANS) India’s flexi workforce is expected to grow to 9.16 million by FY27 at a compound annual growth rate (CAGR) of 12.6 per cent, a new report said on Friday.

The data compiled by the Indian Staffing Federation (ISF) highlights that the flexi staffing industry will play a major role in shaping formal employment in the coming years, supported by economic recovery and rising demand across sectors.

The ISF report, titled ‘Indian Flexi Staffing Industry 2025: Employment Growth – Sectoral & State Analysis’, projects the flexi staffing industry’s revenue to reach nearly Rs 2,58,000 crore (about $24 billion) by FY27, growing at a rate of 17.3 per cent.

By FY26, the market is expected to touch Rs 2,20,000 crore. This growth reflects how companies are increasingly relying on contract and temporary staff to remain agile, reduce compliance burdens, and access skilled talent quickly.

Currently, India ranks third globally in flexi workforce size. The country’s tripartite workforce reached 7.2 million in FY25, representing 1.3 per cent of the total workforce.

Maharashtra, Karnataka, Uttar Pradesh, Tamil Nadu, and Telangana together account for nearly 55 per cent of this workforce, while Tier-2 and Tier-3 cities such as Coimbatore, Mysuru, Indore, Bhopal, and Surat are emerging as key hubs for hiring.

Sector-wise, logistics, banking and financial services (BFSI), and manufacturing together employ about 38 per cent of the country’s formal contract staff.

The e-commerce sector, meanwhile, has recorded the fastest growth in flexi hiring over the past five years, with an average annual growth of nearly 20 per cent.

Fintech has also emerged as a strong contributor. Overall, 80 per cent of the workforce comes from 12 key sectors including IT, infrastructure, retail, education, and healthcare.

ISF President Lohit Bhatia said the rise of flexi staffing is a sign of deepening formal employment across the country.

He noted that Tier-2 and Tier-3 cities are offering temporary workers the benefits of recognised employment, fair pay, annual incentives, and health coverage.

“This reflects the growing availability of skilled labour outside metros and the shift towards a more equitable job market,” he said.

According to the report, the trend is also being shaped by India’s younger workforce.

About 71 per cent of those seeking flexi jobs are under 30 years of age, while women’s participation stood at 26 per cent in the last fiscal.

--IANS

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