The NITI Aayog's report on India's Gig and Platform Economy for 2022 revealed that during the fiscal year 2020-2021, approximately 77 lakh workers were actively engaged in the gig economy. This workforce represented 2.6% of the non-agricultural workforce and 1.5% of the total workforce in India.
The report forecasts considerable growth in the gig workforce, predicting an increase to 2.35 crore workers by 2029-30. By that time, gig workers are expected to comprise 6.7% of the non-agricultural workforce and 4.1% of the total employment landscape in India.
In its recommendations, the report advocates for a transformation of the gig economy through platform-led skilling initiatives. It stresses the importance of enhancing social inclusion via gender sensitization and accessibility programs for workers and their families. Furthermore, it underscores the need to extend social security measures as outlined in the Code on Social Security, 2020.
Presently, around 47% of gig workers hold medium-skilled jobs, 22% are in high-skilled positions, and 31% operate in low-skilled roles. The gig economy is recognized as a crucial contributor to India's ambition of becoming a $5 trillion economy by 2025.
Despite its potential, the gig economy faces regulatory hurdles, particularly regarding social security for this emerging unorganized workforce. The lack of a comprehensive regulatory framework for gig workers and aggregators, coupled with the absence of an effective dispute resolution mechanism, raises concerns.
Rajasthan has taken a pioneering step with the Platform Based Gig Workers (Registration and Welfare) Act, 2023. This is the first state-level effort aimed at providing social security for platform-based gig workers. The Act establishes a regulatory framework featuring a tripartite Welfare Board that includes representatives from the State Government, gig workers, and aggregators.
The Act requires the registration of platform-based gig workers and aggregators, establishes a welfare fund, and imposes a welfare fee on aggregators. Gig workers are entitled to registration, access to social security schemes, and grievance redressal mechanisms.
At the national level, the Code on Social Security, 2020, addresses the social security needs of gig workers. However, it has not yet been implemented. The Code envisions appropriate social security schemes for gig and platform workers.
Despite these initiatives, gig workers continue to encounter challenges related to social security and protection when compared to traditional employees. They often lack essential benefits such as Provident Fund, Pension, ESI, Gratuity, and paid leave.
The gig economy plays a vital role in India's economic growth and employment landscape. To ensure its sustainability, comprehensive social security schemes and equitable working conditions are essential. Both the government and aggregators must prioritize the welfare of gig workers in this evolving unorganized labor market.
Q1. What is the current size of India's gig economy?
Answer: As of 2021, approximately 77 lakh workers were part of India's gig economy, which is expected to grow to 2.35 crore by 2029-30.
Q2. What are the main skill levels among gig workers?
Answer: Currently, about 47% of gig workers are in medium-skilled jobs, 22% in high-skilled roles, and 31% in low-skilled positions.
Q3. What does the Rajasthan Act cover for gig workers?
Answer: The Rajasthan Platform Based Gig Workers Act mandates worker registration, establishes a welfare fund, and ensures access to social security and grievance redressal.
Q4. How does the Code on Social Security address gig workers?
Answer: The Code on Social Security, 2020, aims to provide social security schemes tailored for gig and platform workers, though it is yet to be implemented.
Q5. What challenges do gig workers face compared to traditional employees?
Answer: Gig workers often lack benefits like Provident Fund, Pension, ESI, Gratuity, and paid leave, making their social security situation vulnerable.
Question 1: How many gig workers were estimated in India during 2020-2021?
A) 50 lakh
B) 77 lakh
C) 1 crore
D) 2 crore
Correct Answer: B
Question 2: What percentage of the workforce does the gig economy represent as of 2021?
A) 1.5%
B) 2.6%
C) 4.1%
D) 6.7%
Correct Answer: B
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