Deloitte Releases Campus Workforce Trends 2026 Report

Deloitte India report finds campus hiring budgets up 19%, PPO conversions improving and AI and data skills attracting 20–25% pay premiums

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India’s campus hiring landscape is shifting towards skills-based recruitment as employers increase investments in early-career talent and expand the use of artificial intelligence in hiring.

Deloitte India’s Campus Workforce Trends 2026 finds that campus recruitment budgets have increased by 19 percent, while 86 percent of organisations say AI or Agentic AI is transforming their recruitment processes.

The report, the sixth edition of Deloitte India’s study on early-career talent, shows that employers are moving beyond traditional campus hiring towards targeted shortlisting, skills-based assessments and internship-led recruitment.

Alongside technical capabilities, learning agility, adaptability, collaboration and role-specific skills are becoming more important in hiring decisions.

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Key Findings

• 86% of organisations report that AI or Agentic AI is transforming recruitment.
• 19% increase in campus recruitment budgets as employers invest more in early-career talent.
• 35% of organisations say AI is creating new entry-level roles or changing skill requirements, up from 21% in FY25.
• 20–25% pay premium for AI and data skills, while analytical thinking and problem-solving attract 10–15% premiums.
• PPO conversion rates improved by approximately 6% year-on-year across the covered degree categories.
• 50% of the FY26 target campus hiring mix comprises women, while 42% of organisations offer remote or hybrid work arrangements to early-career talent.

AI Is Changing Campus Recruitment and Skills Demand

AI is increasingly becoming part of the campus recruitment process, particularly in screening and assessment. Resume screening is the most common application, used by 72 percent of organisations, followed by AI-based assessments at 48 percent, candidate engagement at 37 percent and predictive hiring tools at 33 percent.

The impact of AI is also extending to the roles employers are creating and the capabilities they seek. About 35 percent of organisations say AI adoption is creating new entry-level roles or changing skill requirements, compared with 21 percent in FY25.

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Demand for AI-aligned campus roles is strongest in technology-driven sectors. IT and ITeS organisations account for 73 percent of such roles, followed by professional services at 53 percent and financial services at 46 percent.

AI development, cybersecurity, data science and Industry 4.0 skills attract premiums of 20–25 percent. Analytical thinking and problem-solving command premiums of 10–15 percent.

The demand for specialised skills is also spreading beyond technology, with areas such as bioinformatics, biopharmaceuticals, digital health, sustainable finance and industrial cybersecurity emerging as specialised career pathways.

Deloitte India Partner Dr. Neelesh Gupta said the campus market is becoming more selective, with critical roles in AI, data, digital risk and technology attracting higher pay.

He noted that sustained skilling will become increasingly important as AI changes both recruitment processes and early-career roles.

Compensation Rises, but Institute Tier Remains a Major Factor

Campus compensation has grown moderately, with pay across major degree categories increasing at a CAGR of approximately 2–4 percent between FY22 and FY26. Engineering recorded higher growth of around 6 percent.

However, institute tier continues to create a substantial difference in starting compensation.

The gap is also visible in internship compensation, with stipends at Top 10 MBA institutes approximately seven times higher than those at Tier 3 institutes.

MBA graduates continue to command an absolute pay premium of around 45–50 percent over engineering graduates, depending on institute tier. Among MBA programmes, Business Management has the highest pay package premium at 15 percent.

Within engineering, Data Science and Artificial Intelligence Engineering records the highest premium at 9 percent, while Mechanical Engineering and Agriculture Engineering show discounts of around 5–10 percent.

The report indicates that compensation is increasingly shaped by three factors: institute tier, role and specialisation, and demonstrable critical skills.

Professional credentials provide another layer of differentiation. CA/CFA rank holders receive median compensation of ₹20.95 lakh, excluding long-term incentives, compared with ₹14.60 lakh for non-rank holders — approximately 43.5 percent higher.

Internships Strengthen the Path to Full-Time Hiring

Internships are becoming an increasingly important route to full-time employment. PPO conversion rates improved by approximately 6 percent year-on-year across the covered degree categories, reinforcing internships as an important talent assessment channel.

Employers place particular importance on behavioural and learning capabilities when deciding which interns should receive full-time offers. Behavioural competencies rank at 75 percent and learning agility at 72 percent among the strongest predictors of PPO conversion.

Improved matching between candidates and roles is also reflected in retention. Attrition among hires from Top 10 and Tier 1 institutes declined from 18 percent to 15 percent, while one-year attrition fell from 23 percent to 19 percent.

This indicates a growing shift towards using internships to assess not only technical capability but also behaviour, adaptability, learning ability and role fit before making full-time offers.

Diversity, Flexibility and Employer Brand Matter

Gender diversity remains an important part of campus hiring strategies. Women account for 50 percent of the FY26 target hiring mix, compared with 49 percent in FY25. Gender diversity is also the second of three campus-shortlisting filters, after GPA and before assessments.

Technology remains the most preferred sector among students for the fifth consecutive year, followed by financial services. Bengaluru retains its position as the preferred placement city for the sixth consecutive year, while Delhi NCR has moved to second place.

Employers are also expanding their campus value proposition beyond salary. Compensation and work-mode flexibility are the leading objective drivers of talent attraction, while Brand & Prestige and Purpose & Impact are key affective drivers.

Among the benefits offered by employers:

• 59% provide regular online learning modules.
• 55% offer relocation assistance.
• 53% provide annual health and wellness benefits.
• 42% offer remote or hybrid work arrangements.

There is also a difference in the roles offered across institute tiers. Top 10 campuses see greater hiring for management consulting, AI/digital product management and data science roles, while Tier 1–3 hiring is more concentrated in business analyst, software engineer, operations analyst and management trainee positions.

Skills Become a New Layer of Differentiation

Deloitte India’s findings suggest that while degree and institute reputation continue to influence campus hiring and compensation, skills are adding a new layer of differentiation.

For students, academic qualifications increasingly need to be supported by relevant technical and domain skills, analytical thinking, adaptability and continuous learning. For employers, the focus is shifting towards identifying candidates who can meet changing role requirements and contribute in an AI-enabled workplace.

About the Survey

Deloitte India’s Campus Workforce Trends 2026 covered 257 organisations and 505 campuses across MBA, Engineering, BBA, B.Com, B.Pharma, Hotel Management, Law and other undergraduate programmes.

The participating organisations represented Manufacturing, Services, Pharma, Consumer, Financial Services and Technology sectors. The report examines compensation, AI adoption, internship-to-hire programmes, diversity priorities, student preferences, employer value proposition and early-career retention.