The Government of India has announced in Budget 2025 to secure Indian gig workers working for online platforms and fuelling the gig economy of the country. The Government will facilitate their identity cards and registration on the e-Shram portal. They will also be provided healthcare under PM Jan Aarogya Yojana.
The measure will help address the needs and social security of nearly 1 crore gig workers.
The Indian gig worker economy has been growing rapidly in recent years, driven by advancements in technology and the increasing demand for flexible work arrangements. Gig workers are individuals who take on short-term, contract-based jobs rather than being employed in traditional full-time roles. This emerging economy is reshaping the labor market, offering people the opportunity to earn income by working as freelancers, consultants, delivery personnel, or in roles such as drivers, writers, designers, and more. Companies like Ola, Uber, Zomato, and Swiggy have become major players in this sector, providing platforms for workers to offer services to consumers on-demand.
One of the primary reasons behind the gig economy's growth in India is the country's young and tech-savvy population, who are increasingly looking for work that allows them to balance their personal and professional lives. The rise of mobile apps and online platforms has also made it easier for workers to connect with potential employers and for companies to hire on-demand labor. Gig work offers flexible hours, allowing workers to choose when and where they want to work, which is a significant draw for those who require more autonomy.
The COVID-19 pandemic accelerated the shift towards gig work as people sought alternative income sources during lockdowns and restrictions. Many traditional businesses turned to gig platforms for delivery and support services, providing a lifeline to workers and businesses alike. The gig economy also offers opportunities for workers from different backgrounds, including those in rural areas, to tap into employment opportunities that were previously unavailable to them.
However, while the gig economy offers flexibility and independence, it also poses challenges. Gig workers often lack job security, health benefits, and retirement savings, as they are not considered formal employees. Additionally, there are concerns about income instability, with many gig workers earning inconsistent wages that can vary based on demand and workload. The absence of labor laws specifically designed for gig workers leaves them vulnerable to exploitation, leading to calls for better protection and welfare measures.
The Indian government has recognized the growing importance of the gig economy and is exploring ways to regulate and protect gig workers' rights. The Ministry of Labour and Employment has been working on frameworks to include gig workers under the umbrella of social security schemes, which could include benefits like insurance, pensions, and health coverage. Several states are also implementing initiatives to support gig workers by offering training programs and skill development courses to enhance their employability.
Despite these challenges, the gig economy in India continues to expand, attracting both workers and employers. The increasing penetration of the internet and mobile technology is further contributing to the growth of online platforms. The gig economy is also giving rise to new business models and entrepreneurial opportunities, where individuals can create their own micro-enterprises or work as independent contractors.
In the future, the gig economy in India is expected to grow even more, driven by digital innovation and an increasing acceptance of flexible work cultures. As more young people enter the workforce, the demand for gig-based jobs is likely to rise, contributing to the diversification of the labor market. The role of gig workers will become increasingly important in sectors such as e-commerce, logistics, digital marketing, content creation, and many more.
The Indian gig economy is also an essential driver of economic growth, creating millions of jobs and contributing to the nation’s GDP. It has the potential to transform the way businesses operate and workers engage with the job market. However, for it to reach its full potential, addressing the challenges related to job security, welfare, and regulation will be crucial. If these issues are managed effectively, the gig economy could become a cornerstone of India’s future workforce.
Ⓒ Copyright 2024. All Rights Reserved Powered by Vygr Media.
