For decades, landing a campus placement at IT giants like TCS, Infosys, or Wipro symbolised economic security and upward mobility for India’s middle class. It was more than a job offer — it was a social contract promising stability after years of academic pressure and financial sacrifice.
Today, that promise appears increasingly fragile. While India’s IT services industry is stronger than ever — posting record revenues, global expansion, and rising executive compensation — entry-level salaries remain largely stagnant. In 2007, a fresher hired by TCS reportedly earned around Rs 3.16 lakh per annum. In 2026, the same role offers roughly Rs 3.36 lakh — a marginal increase of just Rs 20,000 over nearly 19 years.
This stagnation is not limited to one company. Across major IT firms, fresher salaries continue to hover between Rs 3–4 LPA. In nominal terms, pay seems stable. In real terms, however, inflation and soaring education costs have dramatically reduced purchasing power.
Engineering education has become significantly more expensive, with families often spending Rs 10–25 lakh on a BTech degree, frequently financed through loans. At the same time, urban rents, transport, food, and healthcare costs have climbed steadily. The number of engineering graduates has also multiplied, intensifying competition at entry level.
The result is a widening gap: industry profits and executive pay have surged, while fresher compensation remains frozen. Experts warn that offering top engineering graduates starting salaries near Rs 3 lakh per annum signals a systemic imbalance between education investment and labour market returns.
There are exceptions. Graduates with specialised skills in AI, machine learning, cybersecurity, and cloud computing can secure significantly higher packages. But for the majority entering traditional IT services roles, the financial equation remains challenging.
As inflation erodes real wages and education costs continue rising, the larger question emerges: can the IT industry sustain its role as the engine of middle-class mobility without rethinking entry-level compensation? The answer may shape the future of India’s workforce and economic aspirations.