The Gig Economy in India

The gig economy is anticipated to become a significant job creator in the near future. A comprehensive study by the V V Giri National Labour Institute (VVGNLI) has projected that by 2047, the gig and platform workforce will expand to 61 million, making up 15% of India’s non-agricultural workforce. This forecast is built upon a 2022 report by NITI Aayog, predicting 23 million gig workers by 2030, accounting for 7% of the non-agricultural workforce, up from 3 million in 2020.

Potential Growth Factors

• Technological advancements and regulatory changes could potentially create 90.8 million jobs in the next 22 years.
• The IT sector is creating new job categories in areas like marketplace delivery, ride-sharing, and food delivery, offering livelihood opportunities amidst economic disruptions.

Challenges: Job Quality and Welfare

While the gig economy provides employment, the quality of jobs and access to welfare remain significant concerns. Gig workers in India are positioned between employees and contract workers, which excludes them from benefits like health insurance and paid leave.

• Unlike unorganised-sector workers, gig workers often lack access to government social-security schemes.
• Surveys since 2020 indicate precarious working conditions, with many earning below the minimum wage.

Regulatory Challenges

The Industrial Relations Code, 2020, which addresses some welfare issues, is yet to be implemented. The informal nature of gig work allows platform service providers to reduce costs and attract funding.

Balancing Welfare and Innovation

As the gig economy expands, governments face the challenge of ensuring welfare without stifling innovation. Over-regulation could hinder opportunities, as seen historically in the textile sector. A balanced approach to worker rights and IT business potential is crucial for India's socioeconomic future.