Highlighting India’s innovation capabilities by start-ups and gig economy, FM said these ventures can be capitalized to establish “brand India”.

What is the Gig economy?

• It is characterized by task-based, piece-work or gigs.
• Features: Temporary short-term contracts, independent assignments with flexible work timings,  mediated through digital labor platforms
• Status in India
  • Around 77 lakh  workers were engaged in the gig economy in India (2020-2021). It is expected to expand to 2.35 crore by 2029-30. (NITI Aayog)
• Opportunities:
  • India’s fast-growing emerging markets with increased pace of urbanization
  • Substantial rise in informal economies along with rising middle-class consumption demands
  • Availability of an aspirational class of workers ready to provide wide-ranging services
  • Potential for massive growth and diversification across delivery and  e-commerce

Challenges faced by the Sector

• Lack of social security, employment uncertainty & exploitation, lack of legal status of employees, overlap in definition of gig workers, platform workers giving rise to implementational challenges etc.

Steps to be Taken

• Role of Employer and Business Membership Organizations (EBMOs): facilitate social dialogue and shape policies for sustainable growth and worker protection.(ILO)
• Catalysing Platformization: A Platform India initiative on the lines of Startup India to accelerate platformization by providing funding support etc (NITI Ayog)
• Extending social security for gig & platform workers: by making provisions for paid sick leave, insurance etc