LinkedIn’s AI Labor Market Report 2026, released on April 24, found that AI engineering hiring in India rose 59.5% year on year, marking the fastest pace among the markets studied by the platform.
The growth was driven by demand spreading beyond established tech centers. Cities including Vijayawada are now attracting AI talent alongside traditional hubs like Bengaluru and Hyderabad. According to the report, large companies still employ the biggest share of AI talent, though smaller businesses are also adding roles. The fastest-growing skills among small and medium-sized businesses (SMBs) include AI agents, AI productivity tools, and Azure AI Studio.
Sector-Specific Talent Expansion
AI engineering talent in India’s manufacturing sector expanded fourfold to 2% in 2025, based on LinkedIn member profiles and job posts classified as requiring AI skills.
Geographic Decentralization: Vijayawada’s Role
Vijayawada’s emergence as an AI hiring center reflects years of government infrastructure investment. The Software Technology Parks of India (STPI), a government-backed organization under the Ministry of Electronics and Information Technology (MeitY), opened a center in Vijayawada in 2001 to support software exports. STPI also lists Vijayawada among smaller-city locations covered by its Next Generation Incubation Scheme (NGIS), a startup support program.
Amaravati AI City Initiative
The geographic spread of AI talent connects to broader regional development plans. The AI City Amaravati initiative, located in the nearby state capital region, aims to grow into an AI-focused hub with dedicated research centers and an AI university planned for Visakhapatnam. According to the AI City Amaravati website, the project targets over 100,000 crore rupees (approximately US$12 billion) in AI investment by 2030 and aims to add 10% to India’s AI gross domestic product (GDP).
The initiative is also framed as India’s first regulatory sandbox—a controlled testing environment for AI governance frameworks. According to the AI City Amaravati website, the project will examine AI ethics, automation laws, and governance structures before wider implementation across the country.
FAQ
What is driving AI engineering hiring growth in India?
According to LinkedIn’s AI Labor Market Report 2026, growth is being driven by demand spreading beyond traditional tech hubs like Bengaluru and Hyderabad to secondary cities including Vijayawada. Both large companies and SMBs are adding AI roles, with the fastest-growing skills among smaller businesses including AI agents, AI productivity tools, and Azure AI Studio.
Why is Vijayawada becoming an AI hiring center?
Vijayawada’s development as an AI hub reflects long-term government support, including the Software Technology Parks of India (STPI) opening a center there in 2001 and its inclusion in the STPI’s Next Generation Incubation Scheme. This infrastructure now connects to the broader Amaravati AI City initiative, which aims to establish the region as a major AI research and investment hub.
What is the Amaravati AI City initiative?
According to the AI City Amaravati website, the initiative aims to establish a dedicated AI-focused region with research centers and an AI university in Visakhapatnam. The project targets over 100,000 crore rupees (approximately US$12 billion) in investment by 2030 and is designed to function as India’s first regulatory sandbox for testing AI governance frameworks, ethics guidelines, and automation laws before nationwide implementation.
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