Employment in India's Gig Economy

The gig economy in India is anticipated to double in size over the next five years. This growth presents unique challenges in terms of labor rights, as gig work differs from traditional employment.

Regulation and Classification

• Regulating the gig economy requires a nuanced and inclusive approach that avoids introducing inflexibilities.
• Key regulatory focus areas include: 
  1. Mobility
  2. Working conditions
  3. Social security
  4. Bargaining power
• It's essential to classify gig work as employment and define the conditions around it.

Policy Steps and Future Interventions

• India has made initial strides by incorporating platform work into a separate labor code and expanding publicly funded social security for gig workers.
• The 2023 budget includes healthcare benefits for gig workers under the PM Jan Arogya Yojana.
• Private companies are encouraged to provide similar benefits.
• Future policy considerations should address: 
  1. Access to credit, considering income fluctuations
  2. Portability of social security due to the temporary nature of engagements
  3. Skilling for upward mobility in the gig workforce
  4. Ensuring algorithms do not change contract conditions without human oversight
  5. Maintaining pay parity with formal employment wages

Additional Considerations

• Insurance access is crucial due to the gig economy's navigation through busy and inconsistently regulated transportation infrastructure.
• Policies must address the imbalance in bargaining power, often exacerbated by AI use.
• Skilling is critical to providing growth opportunities and preventing a labor supply shortage for non-progressive jobs.
• The platform economy should develop its own talent pool to compete with traditional distribution channels.