The gig economy in India continues to grow at a rapid pace, emerging as a significant driver of economic growth and job creation. A whitepaper released by the Forum for Progressive Gig Workers highlights the sector’s transformative potential. The gig economy market is projected to grow at a compound annual growth rate (CAGR) of 17%, reaching a gross volume of $455 billion by 2024.
The gig economy is expected to create 90 million jobs and contribute 1.25% to India’s GDP over time, according to the whitepaper.
It supports critical sectors such as e-commerce, transportation, and delivery services, providing flexible income opportunities and expanding the workforce. Tier 2 and 3 cities are emerging as growth hubs, with increased adoption of digital platforms driving both employment and innovation.
The whitepaper emphasises the sector’s role in empowering workers by offering alternate revenue streams, increasing workforce participation for women, and creating avenues for better economic integration. Flexible work arrangements and short-term contracts have made gig work an attractive option for many, especially in urban and semi-urban areas.
Industry contributions to worker welfare
Companies operating in the gig economy are implementing measures to improve working conditions. Initiatives such as providing essential supplies during adverse weather and creating rest facilities reflect efforts to ensure the safety and well-being of workers. Large players in the sector, including major e-commerce and delivery platforms, are spearheading these welfare initiatives, demonstrating their commitment to supporting the workforce.
However, the whitepaper also notes challenges arising from activism by certain worker organizations, which it suggests could hinder ongoing progress. Striking a balance between worker welfare and maintaining the sector’s flexibility is seen as critical for its sustained growth.
The report stresses the need for a nuanced approach to worker benefits. While ensuring social security for gig workers is important, the whitepaper warns that equating gig work with full-time employment could disrupt labor market dynamics, reducing the appeal of permanent roles and impacting overall economic stability. A balanced framework is essential to protect workers’ interests without overburdening companies or undermining the gig economy’s inherent flexibility.
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