GIG ECONOMY STRIVING FOR TRANSPARENCY

India's gig economy, expected to grow at a rate of 17% and reach a gross volume of $455 billion by 2024, presents both a substantial economic opportunity and a pressing challenge for policymakers.

- Shivanand Pandit

The sector has the potential to generate 90 million jobs and contribute 1.25% to the country's Gross Domestic Product. However, Shivanand Pandit feels that robust frameworks are necessary to balance the interests of stakeholders.

The plight of gig workers in India has garnered significant public attention, particularly following the introduction of gig workers’ bills in Rajasthan and Karnataka. During 2020-2021, approximately 7.7 million individuals participated in the freelance economy, accounting for 2.6% of the non-agricultural workforce and 1.5% of the overall workforce. These figures underscore the critical role of this sector. While these legislative developments signal progress, addressing flexible workers’ core challenges remains essential.

India's gig economy, expected to grow at a rate of 17% and reach a gross volume of $455 billion by 2024, presents both a substantial economic opportunity and a pressing challenge for policymakers. The sector has the potential to generate 90 million jobs and contribute 1.25% to the country's Gross Domestic Product. However, robust frameworks are necessary to balance the interests of independent workers, platform companies, and the broader economy. Predominantly focused on e-commerce, transportation, and delivery, these jobs provide alternative income opportunities and foster workforce inclusion. Yet, they also leave workers vulnerable to issues such as income instability and limited access to social security. To ensure the sector's growth is inclusive and sustainable, a comprehensive approach is needed to incorporate social protection measures, industry best practices, and fair regulations.

Who is a Gig worker?

Gig workers are currently recognized under the Code on Social Security, 2020, marking their first inclusion in Indian Labour Laws. However, there is still ambiguity regarding the exact characteristics of a gig worker.