India’s tech sector in 2025 is a tale of two extremes. On one hand, the industry’s top CEOs are enjoying record-breaking pay packages, with median executive salaries soaring by 160% in just five years. On the other, millions of fresh engineering graduates are entering the workforce with starting salaries that have barely budged in a decade; a déjà vu scenario that’s leaving young tech talent frustrated and questioning the industry’s promise of upward mobility.
Despite India’s GDP doubling from $2.1 trillion to $4.2 trillion over the past decade and the tech job market booming with 22% growth projected in two years, the average starting salary for IT freshers remains stubbornly stuck at around ₹3.5 lakh per annum. According to industry veterans, this figure has seen only a 15% increase since 2011, with most offers for the class of 2025 still falling in the ₹3–5 lakh range.
In stark contrast, CEO compensation at leading IT firms has skyrocketed, driven by global expansion, stock options, and performance bonuses. Former Infosys CFO Mohandas Pai notes that while executive pay has soared, fresher salaries have barely kept pace with inflation.
India produces nearly 1.5 million engineering graduates every year, but only a fraction secure jobs through campus placements. The glut of candidates many from core streams like civil or mechanical engineering seeking IT roles has eroded individual bargaining power, especially for those from Tier-2 colleges.
IT services firms have seen billing rates drop sharply, with clients now paying $20–$25 per hour for outsourced work, down from $40 a decade ago. To maintain profit margins, companies have kept entry-level salaries low, relying on a steady stream of freshers willing to accept modest pay.
The rupee’s slide from ₹62–63 to nearly ₹85 per dollar over the past decade has helped firms offset lower billing rates, but it hasn’t translated into higher salaries for new hires. With such a large talent pool, companies offer little differentiation in pay between campuses or regions, further flattening the fresher salary curve.
For the class of 2025, the reality is sobering. Even as tech remains an aspirational career path, many graduates are forced to accept offers that barely cover living expenses in India’s major cities. The lack of meaningful salary growth has led to increased attrition, with many freshers jumping jobs within a year for even a marginal pay hike.
Meanwhile, the competition for coveted roles in Global Capability Centers (GCCs) and high-demand domains like AI and cybersecurity is fierce, with starting salaries in these niches sometimes reaching ₹9–12 lakh per annum. But for the majority, the ₹3.5–5 lakh bracket remains the norm.
The widening gap between executive and entry-level pay is fueling debate about fairness and sustainability in India’s tech industry. While top leaders are rewarded for driving global growth and shareholder value, the next generation of engineers is left wondering when or if their own compensation will reflect the sector’s success.
