Prospect of Gig Economy in India: Opportunities and challenges for the gig workers

In the modern age of the digital world, the definition of a successful career has evolved to a certain extent. Those days are gone when university degrees and conventional jobs were assumed to be the only path to gain success in a career. Rather, a major shift has been observed towards a talent-driven and flexible economy where the emphasis is being given to capturing the creativity, strengths and potential of the individuals.

In this regard, the concept of the gig economy and gig workers can be highlighted, which was previously observed predominantly in the Western world, but now the trend has expanded in India as well, accelerated by technological advancement and entrepreneurial spirit. With the emergence of the concept of the gig economy, the way of working has been considerably revolutionised, and the trend is expected to remain for a long time.

Understanding the Gig Economy: Who Are Gig Workers?

If you have become habitual in using an application for calling a freelance taxi driver, ordering food, purchasing homemade crafts or booking a holiday rental, then you are most likely to have taken part in this section of the economy. The gig economy promotes the usage of digital platforms to connect freelancers, independent contractors or subcontractors with customers on the basis of short-term and payment-by tasks. In simple words, gig workers are found to be engaged in temporary work agreements to earn money by going beyond the traditional employer-employee relationship.

Some of the prominent examples of gig work involve food delivery, content writing for a website, career coaching or building a web app. The gig economy covers a wider range of professions nowadays, creating opportunities for individuals to utilise their competencies and interests in a dynamic and flexible work environment. Professionals like writers, graphic designers, video editors, and photographers can access freelance gigs through their creativity in digital platforms like Fiverr, Upwork, Truelancer, and Behance in terms of offering their services to global clients.

Growth of Gig economy in India

As per the research of the World Economic Forum, the market volume of the gig economy worldwide has risen significantly, especially after the pandemic, and now it has almost doubled in comparison to the pre-pandemic situation. As of 2023, the estimated gross volume of the gig economy is around 455.2 billion US dollars, which was previously 204 billion US dollars in 2018.

Concerning the case of India’s booming gig and platform economy, the 2022 report published by NITI Aayog revealed that the share of gig workers in the total number of workers has risen from 0.54% in 2011-12 to 1.33% in 2019-20. Around 77 lakh (7.7 million) workers were found to be engaged in the gig economy in India in 2020-21, while the workforce belonging to this segment is most likely to increase to 2.35 crore (23.5 million) by 2029-30.

The report of NITI Aayog also clarified that approximately 22% of the gig workers are engaged in high-skilled jobs, while  47% are in medium-skilled jobs and around 31% in low-skilled jobs. However, according to the trend, the share of workers in the medium skills is gradually decreasing, and the high-skilled and low-skilled are rising. 

Opportunities of the gig economy

In the gig economy, individuals can get access to vast employment opportunities. While in the recent job market, finding a job has become more difficult, the gig economy is providing ample job opportunities to people, including both men and women, on a contract basis to fulfil their temporary financial needs. The major advantage that the workers get in the gig economy is the flexibility to work which means the people can work from any geographical location in their chosen schedule of working hours. This also provides an opportunity for women to become self-reliant.

Challenges for the gig workers 

In India’s Social Security Code 2020, a number of concerns for gig workers have been listed in the context of their social security. As the gig workers used to work in an unorganised and unregulated sector, therefore, there is a menial job security. There is a possibility of not getting the payments in some cases, even after submitting the task in the estimated time. Benefits like health insurance, pensions and gratuities are not also available in this type of work system. Furthermore, the inconsistency in earnings, lack of legal protection, and less scope for the upgradation of skills are some of the other major drawbacks of working in the gig economy.

Recommendation from the NITI Aayog towards the improvement of gig economy

The NITI Aayog report has recognised the need for emerging policy development to safeguard gig workers. In this context, a number of improvement areas have been identified by the NITI Aayog, which includes enhanced access to credit for gig workers, especially women and emphasis on skill development initiatives. The report has also given emphasis on the requirement of formalising credit, promoting gender inclusivity, along informed policymaking based on the gathering of valuable data. In order to build a supportive ecosystem for gig workers, it is important to associate with stakeholders and continuously evaluate the policies. It is also recommended to leverage the power of technology towards creating an efficient gig economy.

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