On the Peril Path?

Measures announced in the Budget proposal are a welcome step but the problem is much deeper

- Prabhat Sharma

The role and responsibilities of Gig Worker (GW) is different from traditional permanent employment. Payment is made based on the work completed, not on the basis of attendance. In other words, the gig economy is a labour market characterized by temporary contracts rather than permanent positions. People earn money from providing on-demand work, services, or goods.

A wide variety of positions fall into the category of gig work. The work can range from managing short-term rentals, tutoring, writing code, to driving for delivery services.

The gig economy experienced significant growth in 2020. COVID-19 lockdowns forced people to work from home and rely more on purchasing goods and services online and these trends continued even after restrictions were lifted.

Trends show about 47 per cent of the gig work is in medium-skilled jobs, about 22 per cent in high-skilled jobs and about 31 per cent in low-skilled jobs.

This article focuses primarily on gig work pertaining to delivery of food and other materials for various platforms like Swiggy, Zomato, etc.

Post Covid 19, there have been discussions among the academicians, think tanks and society in general, on the relevance of gig work. Additionally, there is concern about the business model, which is largely one-sided, offering no social security or financial support. Some argue that gig workers should not become another group of people exploited to maximize profits for businesses, akin to the conditions seen during the industrial revolution, where exploitation was rampant and social security was minimal or non-existent.

Let's address these issues one by one.

Growth and future of the gig economy in India