By Amit Kapoor
The gig economy is no longer a fringe, niche pocket of India’s labour market. It is steadily becoming a central force and reshaping the way people work and earn a living. The increasing modernity and ease of digital platforms are changing the nature of employment, revealing both growing opportunities and inequalities, as well as the independence and insecurity of jobs.
Over the past decade, gig and platform-based work has expanded swiftly in labour markets across developed and developing countries. From food delivery and ride-hailing to freelance consulting and care services, millions now rely on apps and algorithms for income. In the US, more than one-third of workers report expecting to rely on gig work to make ends meet. In Malaysia, approximately 70% of gig workers are part-time workers. At the heart of these shifts are shared conditions of rising living costs, a preference for flexible hours, easy access to digital tools and platforms, and advances in digital infrastructure and AI-driven platforms.
Gig economy set to triple by 2030
India showcases a dramatic expansion trend. According to NITI Aayog and Economic Survey 2023-24, the number of gig workers is projected to rise from 7.7 million in 2020-21 to 23.5 million by 2030, comprising 6.7% of the non-agricultural workforce or 4.1% of India’s total workforce by 2029-30. The sector contributes 1.25% to GDP, and is projected to treble and grow to 4% by 2030. Several factors are fuelling its growth. With platforms like Swiggy, Ola, Zomato, and Urban Company expanding rapidly and connecting millions with on-demand jobs, urban areas have become hubs of this transformation.
Yet, these gains come at a cost. A 2023 Fair Work India study revealed delivery and ride-hailing workers earn `15,000-20,000 per month, despite working extensive hours, which places them below the minimum wage thresholds. In addition to this, the “10-minute delivery” race often turns into a relentless daily hustle for gig workers, who bear risks, face safety issues, and endure fatigue to cater to consumer convenience. Gig workers, while technically classified as “independent contractors”, often work in conditions resembling informal labour, i.e. long hours, low pay, and no protections. They lack entitlements such as paid leave, health insurance, and accident compensation. They depend on applications and ratings which govern their work allocation and job continuity, through opaque algorithms. Many hail from rural India and live under the constant threat of “deactivation”, a subtle term for dismissal, often without warning or recourse to appeal.
Another issue in the gig economy is the glaring gender disparity. Though women’s labour force participation has risen (from 23.3% in 2017-18 to 41.7% in 2023-24), primarily driven by self-employment and partly by flexible opportunities, only 11% gig workers are women. Most of them are concentrated in low-paying care-based services like home cleaning and beauty. For many women, especially from marginal groups, the gig economy offers entry into the workforce, but safety, maternity benefits, or fair pay remain elusive. Algorithms reflective of discrimination, customer bias, and geographical disadvantage further limit access to better-paying roles. A Diwali “digital strike” by female gig workers in 2024, led by the Gig and Platform Workers’ Union (India’s first women-led gig workers’ union), Delhi, highlighted these issues, ranging from workers demanding maternity leave and safety provisions to dignified wages.
The Indian government has taken initial steps to address the issues outlined above. The Code on Social Security, 2020, formally recognises gig and platform workers as a distinct category and proposes creating a social security fund with contributions from platform companies. The FY26 Budget announced registration of online platform workers on the e-Shram portal, identity cards for gig workers, and access to health insurance under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana. States like Rajasthan and Karnataka have taken it a step further. Rajasthan passed a forward-looking law, the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023, mandating platform registration, creation of a welfare board, and grievance redress mechanisms. Similarly, Karnataka has introduced the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, which requires platforms to contribute 1-5% per transaction toward a welfare fund.
These steps signal intent to formalise and protect the workforce. But global practices are moving further in both scope and inclusivity. In the EU and Canada, the burden of proof is shifting to firms to justify classifying workers as independent contractors. This approach expands access to rights, including minimum wage, job security, and collective bargaining. While reforms suggest practical approaches, particularly in addressing worker misclassification and closing enforcement gaps, India must go further. With its vast consumer base, an expanding platform economy demands a fair, accountable, tailored, and long-term systemic overhaul.
First, the legal classification of gig work must evolve to reflect its hybrid nature and the realities of platform-based labour. The Code on Social Security, 2020, marks an important first step in this direction. It recognises gig and platform workers and envisions support structures, such as helplines and facilitation centres, to help workers register and enrol in social security schemes. It also assigns responsibility to state governments for addressing employment-related issues under existing labour laws. Its provisions must be translated into accessible, enforceable protections that strike a balance between platform viability and worker welfare. Second, to supplement this, a universal ID linked to social security benefits must be integrated with the e-Shram portal to help track contributions and ensure benefits follow workers across platforms and locations.
Third, India must invest in skill building programmes tailored for gig workers. Short, mobile, multilingual micro-courses in logistics, digital or AI tools can boost income and job quality. Digital literacy and safety training, particularly for women, can close access gaps and improve working conditions. Fourth, grievance redress mechanisms must be platform-mandated, transparent, and worker-friendly. Finally, gender-inclusive policies must be a core priority. Access to menstrual leave and safety features, especially for those in care and delivery work, can make the sector more equitable.
India’s gig economy is at a critical juncture. It holds the potential to unlock employment, innovation, and inclusive growth. But without a strong rights-based foundation and comprehensive reform, it risks becoming another site of exploitation and inequity. An urgent overhaul, backed by legal recognition, social protection, and active governance, can transform gig work from a precarious hustle into a pathway to prosperity.
The author is Chair, Institute for Competitiveness
With inputs from Nabha Joshi, researcher, Institute for Competitiveness