Promise and precarity

NEED FOR URGENT OVERHAUL, BACKED BY LEGAL RECOGNITION, SOCIAL PROTECTION AND ACTIVE GOVERNANCE

- AMIT KAPOOR

THE GIG ECONOMY is no longer a fringe, niche pocket of India’s labour market. It is steadily becoming a central force and reshaping the way people work and earn a living.The increasing modernity and ease of digital platforms are changing the nature of employment, revealing both growing opportunities and inequalities, as well as the independence and insecurity of jobs.

Over the past decade, gig and platform-based work has expanded swiftly in labour markets across developed and developing countries. From food delivery and ride-hailing to freelance consulting and care services, millions now rely on apps and algorithms for income. In the US, more than one-third of workers report expecting to rely on gig work to make ends meet. In Malaysia, approximately 70% of gig workers are part-time workers. At the heart of these shifts are shared conditions of rising living costs, a preference for flexible hours, easy access to digital tools and platforms, and advances in digital infrastructure and AI-driven platforms.

India showcases a dramatic expansion trend. According to NITI Aayog and Economic Survey 2023-24, the number of gig workers is projected to rise from 7.7 million in 2020-21 to 23.5 million by 2030, comprising 6.7% of the non-agricultural workforce or 4.1% of India’s total workforce by 2029-30. The sector contributes 1.25% to GDP, and is projected to treble and grow to 4% by 2030. Several factors are fuelling its growth. With platforms like Swiggy, Ola, Zomato, and Urban Company expanding rapidly and connecting millions with on-demand jobs, urban areas have become hubs of this transformation.