A gig economy is a labour market that relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees.( ex: graphic designer, event planners, freelance writers, food delivery riders)
According to ASSOCHAM, India’s gig economy is growing at a CAGR of 17 per cent. Employment elasticity to GDP growth for gig workers was above one throughout the period 2011-12 to 2019-20, and was always above the overall employment elasticity.
Gig Economy- Huge Job Creation Potential
Growth of E-commerce: The growth of e-commerce has created a need for delivery and logistics services, driving gig job creation.
The number of users of e-commerce is expected to amount to 375.2 million users by 2029 and e-commerce giants like Amazon India and Flipkart rely on gig workers for last-mile delivery.
Minimal Requirements: Many gig jobs require minimal qualifications or upfront investments, making them accessible to more people.
Delivery drivers for Swiggy or Zomato need only a two-wheeler and a smartphone to start working.
Flexibility in Job : The gig economy allows people to work from anywhere, which is particularly beneficial in areas with limited traditional job opportunities. (ex: graphic designer, writers, website developer)
Gig workers can choose their working hours, making it easier to manage personal schedules and commitments.
Increased Employment Opportunities for Women making it easier for women to balance work and family responsibilities.
Increased Connectivity: The proliferation of internet access and mobile technology has enabled more people to participate in the gig economy.
By 2040, the number of smartphone users in India will reach 1.55 billion.
Urbanisation: Rapid urbanisation has created a demand for various services, fueling the gig economy.
By 2036, urban cities will be home to 600 million people, or 40 percent of the population, up from 31 percent in 2011
Socio Economic Challenges
Lack of Job Security: Gig workers often face fluctuating income levels due to irregular job assignments and varying demand.
No Employment Benefits: Unlike traditional employees, gig workers typically do not receive benefits such as provident fund, life and health insurance, paid leave, retirement plans, work Accident Insurance etc.
Poor Working Conditions: Gig workers often work long hours to meet quotas or earn enough income
Ride-sharing drivers may work extended shifts to maximize earnings during peak hours.
Safety Concerns: Some gig workers face safety risks, especially in jobs involving late-night shifts or delivery to unfamiliar areas.
Social Isolation: Gig workers often work independently, which can lead to feelings of loneliness.
Way Forward
Data Collection and Research: Niti Ayog in its ‘India’s Booming Gig and Platform Economy’. report recommended to prioritise collecting comprehensive data on the gig economy .
Social Security Benefits: Extend benefits such as healthcare, retirement plans, and insurance coverage to gig workers.
Rajasthan introduced Platform Based Gig Workers (Registration and Welfare) Act
Code on Social Security 2020
Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM)
Atal Pension Yojana
Financial Inclusion: Facilitate access to credit, savings, and financial planning services tailored to the irregular income of gig workers.
Mudra Bank, Jan Dhan Yojana
Upskilling Programs: Offer training and certification programs to enhance the skills and employability of gig workers in emerging sectors.
SWAYAM Portal, Skill India Mission
The June 2022 NITI Aayog report projects India’s gig workforce to grow to 2.35 crore by 2030, constituting 4.1% of the total workforce. Therefore, safeguarding gig workers’ safety, security, and well-being is pivotal for their sustainable integration into India’s future workforce.
Exam Oriented Answer- 1
Exam Oriented Answer – 2
Answer
A gig economy is a labour market that relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees.( ex: graphic designer, event planners, freelance writers, food delivery riders)
According to ASSOCHAM, India’s gig economy is growing at a CAGR of 17 per cent. Employment elasticity to GDP growth for gig workers was above one throughout the period 2011-12 to 2019-20, and was always above the overall employment elasticity.
Gig Economy- Huge Job Creation Potential
Socio Economic Challenges
Way Forward
The June 2022 NITI Aayog report projects India’s gig workforce to grow to 2.35 crore by 2030, constituting 4.1% of the total workforce. Therefore, safeguarding gig workers’ safety, security, and well-being is pivotal for their sustainable integration into India’s future workforce.