Gig Economy in India: Growth, Social Security and Policy Challenges

Context

NITI Aayog projects India’s gig workforce to grow from 77 lakh to 1.27 crore (2024–25) and 2.35 crore by 2029. Yet, only 8.58 lakh workers have registered on the government portal, creating a major estimation–registration gap that can hinder social-security delivery and policymaking.

About Gig Workers

1. Definition: Under the Code on Social Security, 2020, a gig worker earns through work outside the traditional employer–employee relationship.
2. Types:

• Platform workers: Obtain work through digital apps/websites.

Examples: Food-delivery partners (Swiggy, Zomato), cab drivers (Uber, Ola), e-commerce delivery workers (Amazon, Flipkart) or online freelancing.

• Non-platform workers: Undertake casual or own-account work without using a digital platform.

Examples: Freelancers, domestic workers, construction workers, street vendors and independent repair/service providers.

Growth Drivers

1. Digitalisation: Smartphones, cheap internet and digital payments have expanded platform-based work.
2. Low entry barriers: Limited qualification and asset requirements make gig work accessible to youth, women and other workers.
3. Growth of e-commerce: Expansion of online retail, food delivery, logistics and mobility services has increased demand for gig workers.
4. Demand for flexibility: Flexible working hours attract students, women and workers seeking supplementary income.

Significance

1. Inclusive employment: Low entry barriers and flexible work make gig jobs an important source of livelihood for youth, women and persons with disabilities.
2. Flexible work: Workers can choose working hours and locations, making gig jobs useful for those balancing work with other responsibilities.
3. Urban services: Gig workers support key services such as transport, delivery, logistics and home services across cities.
4. Occupational mobility: Platform work can provide better earning opportunities and wider market access, helping workers shift to new occupations.
5. Future workforce: With the gig workforce projected to reach 2.35 crore by 2029–30, it is becoming an important part of India’s changing labour market.

Key Concerns

1. Job Insecurity and Limited Worker Protection: Gig workers often face irregular incomes, limited job security and inadequate access to traditional labour protections such as paid leave, maternity benefits and collective bargaining.
2. Data gap: Low registration makes it difficult to identify workers and formulate targeted policies.
3. Regional gap: High registration in Maharashtra, Uttar Pradesh and Bihar but lower registration in Tamil Nadu, Telangana and Kerala makes the actual geographical spread unclear.
4. Algorithmic control: Ratings, automated work allocation and account suspension can affect workers’ earnings without adequate transparency or grievance mechanisms.
5. Sectoral concentration: Gig employment is concentrated mainly in food/allied services, followed by automobile-related activities.

Government Initiatives

1. Code on Social Security, 2020: Legally recognises gig and platform workers and provides for social-security schemes and a Social Security Fund.
2. e-Shram Portal: Creates a National Database of Unorganised Workers, including gig and platform workers, and facilitates access to welfare schemes.
3. Union Budget 2025–26: Announced identity cards, e-Shram registration and healthcare under Ayushman Bharat–PM Jan Arogya Yojana (AB-PMJAY) for nearly 1 crore gig workers.
4. Pradhan Mantri Suraksha Bima Yojana (PMSBY): Provides eligible registered unorganised workers, including gig workers, ₹2 lakh accidental insurance cover.

Way Forward

1. Expand Registration: Simplify e-Shram enrolment through Common Service Centres (CSCs), State Seva Kendras and platform aggregators to reach more workers.
2. Improve Data Quality: Regularly update worker records and cross-check them with labour-force data to identify coverage gaps.
3. Strengthen Platform Role: Require digital platforms/aggregators to facilitate worker registration and keep worker information updated.
4. Ensure Portable Benefits: Make social-security benefits portable across platforms, employers and locations, especially for migrant workers.
5. Strengthen Worker Protection: Provide accessible grievance redressal through helplines and facilitation centres, accident insurance, health and maternity support and old-age protection under the social-security framework.
6. Data Protection: Ensure privacy, secure data-sharing and transparency while integrating government and platform databases.

Conclusion

India’s gig economy can become an important source of employment, flexibility and inclusive growth. Strengthening social protection, skills and worker–platform accountability can help India build a more productive and secure future workforce.

UPSC FAQs

Q1. Who is a gig worker?
Ans. Under the Code on Social Security, 2020, a gig worker earns through work outside the traditional employer–employee relationship.

Q2. What does the Code on Social Security, 2020 provide for gig workers?

Ans. It legally recognises gig and platform workers and enables social-security schemes for them.

Q3. What is the e-Shram Portal?

Ans. It is a National Database of Unorganised Workers, including gig and platform workers.

Q4. What is the main issue with gig-worker registration?

Ans. A large gap exists between estimated gig workers and registered workers.Bottom of Form