Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context: Gig and platform worker unions announced a strike on Wednesday against “systemic exclusion from core labour entitlements” and sought Centre’s intervention to stop exploitation. In a letter to Union Labour Minister, workers demanded immediate government action against platforms in food delivery and taxi sectors.
Gig Workers
- Definition and Types
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- Gig worker is defined under Code on Social Security, 2020 as working outside traditional employer–employee relations.
- Types of gig workers include platform-based and non-platform-based workers.
- Platform workers operate through digital platforms like Ola, Uber, Zomato, Swiggy, Urban Company.
- Non-platform gig workers include casual wage workers and own-account workers in conventional sectors.
- Growth Trends and Data (NITI Aayog)
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- 77 lakh gig workers were engaged in India during 2020–21.
- Gig workforce projected to reach 2.35 crore by 2030.
- Gig economy expanding at nearly 13% annual growth rate.
- Reasons for Growth
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- Demographic dividend, with about 65% population in the 15–64 working-age group.
- Rapid urbanisation and increasing demand for flexible services.
- COVID-19–induced remote work and platform-based employment expansion.
- Digital penetration, with 85.5% households owning smartphones.
Significance of Gig Economy
- For Government
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- Supports employment generation; gig-linked businesses create 56% of new jobs.
- Contributes to growth; transactions may reach $250 billion by 2030.
- For Society
- Enables inclusion of women, youth, and persons with disabilities through flexible work.
- Encourages micro-entrepreneurship by monetising skills, assets, and time.
- For Workers and Consumers
- Provides flexible employment, task-based work, and location independence.
- Enhances skill development like digital literacy and self-management.
- Offers consumers greater convenience, choice, and global market access.
Challenges Faced by Gig Workers
- Lack of social security, with 82.5% gig workers being informal.
- Health and safety risks due to long hours and delivery pressures.
- Income insecurity, with many earning below statutory minimum wages.
- Algorithmic asymmetry, including opaque ratings, wage fixation, and privacy concerns.
Steps Taken by Government
- Code on Social Security, 2020 extends social security coverage to gig workers.
- Code on Wages, 2019 ensures minimum and floor wages for all workers.
- e-SHRAM Portal creates a national database of unorganised and gig workers.
- Pradhan Mantri Suraksha Bima Yojana provides accidental insurance to registered gig workers.
Conclusion
- India needs a comprehensive regulatory framework ensuring fair wages, social security, transparency, and algorithmic accountability.