Why in News: India’s gig workforce projected by NITI Aayog (2022) to expand from 7.7 million (2020-21) to 23.5 million by 2029-30. Supreme Court and policy discussions increasingly focus on worker protection in new-age digital labour.
Introduction
- The gig economy has become a defining feature of the 21st-century labour market, enabled by digital platforms and consumer demand for instant services.
- From food delivery to ride-hailing and e-commerce logistics, gig workers are now central to India’s digital economy.
- Yet, their lives are marked by precarity, low wages, algorithmic control, and lack of social security.
- The recent surge of literature and films, such as Zwigato (2022) and Vandana Vasudevan’s OTP Please (2025), shed light on both the promise and pitfalls of this new form of employment.
Features of the Gig Economy
- Platform-Mediated Work – Food delivery, cab services, grocery apps, logistics.
- Flexibility – Workers can choose hours and assignments.
- Algorithmic Management – Work allocation and performance driven by apps.
- No Employment Guarantee – Independent contractor model rather than employer-employee relation.
- Consumerism-Driven – Instant gratification fuels demand for gig services.
Opportunities Offered
- Employment Creation – Absorbs surplus labour, especially youth and migrants.
- Flexibility – Attracts Gen X, Y, Z workforce seeking autonomy.
- Digital Transformation – Promotes use of AI-based and tech-enabled services.
- Entrepreneurial Space – Enables start-ups and new service innovations.
- Urban Lifestyle Support – Meets the demand for convenience and speed in cities.
Challenges Faced by Gig Workers
Economic Precarity
- Low and unstable incomes.
- Absence of minimum wages or assured earnings.
- High dependence on ratings and targets.
Lack of Social Security
- No health insurance, provident fund, or pension.
- Workers treated as “partners” not employees → excluded from labour laws.
Algorithmic Control
- App-based surveillance, constant pressure to meet deadlines.
- Invisible penalties like reduced ride orders for low ratings.
Mental and Physical Strain
- Long hours, road risks, and emotional stress.
- Isolation and lack of social belonging, highlighted in literature/films.
Structural Issues
- Weak labour regulation in the platform economy.
- Government underestimates true size of workforce → inadequate policy.
Global and Indian Perspectives in Literature & Research
- Nandita Das’s Zwigato: Highlights daily struggles of food delivery workers.
- Vandana Vasudevan’s OTP Please: Emotions of gig workers and consumers, precarity of platform rules.
- Amitava Ghosh’s Gig Economy in India Rising: Argues gig work aligns with flexible modern work culture.
- Pradip Ninan Thomas’s Gig Economy in India: Start-Ups, Infrastructure and Resistance: Examines state, platforms, and workers.
- Jamie Woodcock & Mark Graham’s The Gig Economy: Early comprehensive study of precarious labour globally.
- Sarah Kessler’s Gigged: Raises critical question of sustainability of wages in flexible jobs.
Government Response and Reports
NITI Aayog Report (2022):
- Workforce projected to 23.5 million by 2030.
- Recommendations for social security, insurance, and skilling.
Code on Social Security, 2020:
- Includes gig and platform workers under labour codes for the first time.
- State-level responses: Few pilot schemes for insurance/accident cover, but implementation is weak.
Way Forward
Legal & Social Security Net
- Implement provisions of the Code on Social Security, 2020.
- Ensure gig workers get insurance, provident fund, maternity benefits.
Minimum Wage Standards
- Establish floor wages across platforms.
- Transparency in algorithms and commission structures.
Worker Representation
- Promote unions/associations of gig workers for collective bargaining.
Corporate Responsibility
- Platforms must share profits fairly and disclose working conditions.
Consumer Awareness
- Encourage ethical consumption – respect delivery workers, fair tipping, support dignified work.
Policy Integration
- Recognise gig work in labour statistics.
- Link skilling programs with future of digital and AI-based jobs.
Conclusion
The gig economy represents both the wondrous and diabolic face of India’s new economy. While it fuels growth, convenience, and jobs, it also deepens precarity, inequality, and alienation for millions of workers.
UPSC Relevance
GS Paper II – Governance, Social Justice
- Welfare of vulnerable sections (gig/platform workers).
GS Paper III – Indian Economy
- Employment trends in the digital economy.
Mains Practice Question
Q.“The gig economy reflects both opportunity and precarity. Critically analyse the socio-economic challenges faced by gig workers in India and evaluate the adequacy of existing policy responses.”