Author: Suktika Bhattacharyya, Jogesh Chandra Chaudhuri Law College, University of Calcutta
Definition & Classification
‘In India’s new Labour Codes, “gig worker” is defined as “a person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship”. Similarly, a “platform worker” is one engaged in “platform work” – an online, task-based service arrangement. This broad definition covers drivers, couriers, delivery agents, freelancers, and other on-demand service providers. By statute, gig and platform workers are now recognized as distinct categories: for the first time, India’s Code on Social Security (2020) explicitly defines and authorizes social security measures for them. In principle, the Code envisages schemes (life/disability insurance, health, maternity benefits, pension, etc.) for gig workers.’ The earlier trace of this usual temporary job has been found in the piece of Jack Kerouac mentioning his gig as a part time brakemen for the Southern Pacific Railroad. The NITI Aayog Report 2022 classifies gig workers as individuals engaged in work outside the traditional employer-employee setup, with two distinct subsets – platform workers and non-platform workers. In one hand while the Platform workers utilize Amazon or Uber as an online algorithmic matching platform to build up communication line between customers, on the other the non-platform workers focus on ‘technology independent temporary work’.
How are the Opportunities for Gig economy workers Evolving in India
The world has already witnessed its footstep at the door of fourth industrial revolution. The digitalized economy has opened the door of several job opportunities for various industries. These momentous changes have led to establishment of Gig economy where people (from GenY to Gen Z) are engaged in jobs that do not require 9 to 5 commitment i.e. people engage in independent work. It is estimated that by 2030 India would be the 3rd largest population of gig economy workers. The gig economy is valued at approximately USD 20 billion in India, and it’s poised to grow by 17% annually until 2027, the gig workforce in India is projected to grow to 23.5 million (2.35 crore) workers by the year 2029-30. The gig workers are expected to form 6.7% of the non-agricultural workforce or 4.1% of the total livelihood in India by 2029-30. The opportunities for gig economy workers in India are evolving rapidly, with diversification across multiple sectors being one of the most significant trends. In logistics, delivery & transportation sector the opportunities for women delivery agents, part time riders are increasing as a core employer of Swiggy, Zomato, Dunzo, Blinkit, Ola, Uber. Uppermost the demand for the ultra-fast delivery personnel because of the quick commerce rising is working as a catalyst in the growth of last-mile delivery in Tier-2 & Tier-3 Cities. The surge in festive hiring via gig platforms raised the hub of opportunities for the inventory auditors and packers in the Retail & E-commerce sector, e.g. Flipkart, Amazon, Meesho, Jio Mart. The opportunities for creative gigs, tech gigs, virtual assistants are increasing in the platforms like Upwork, Freelancer, Fiverr, Toptal. Additionally in the home service sector in the platforms like Urban Company, Housejoy and others securing multiple opportunities as certified beauticians, electricians, AC technicians. With the rise of gig based online educators and subject experts via content creation and video lectures opportunities are not exaggeration for remote tutors, freelance creators, test prep experts. In the healthcare sector platforms like Pharm Easy gig workers are being deployed for the delivery of medicines, teleconsultation support. Especially mentionable that start ups are also hiring lab technicians and phlebotomist (blood collector). The sustainability emerging trend fosters the opportunities for waste editors, EV charging point operators with the support of Government and NGO. Finally, the Gig based collaboration for social media campaign influence videographers, voice-over artists to reach the citizens via You Tube, Instagram and other social media.
Major Challenges Faced by Gig workers in India.
Gig workers in India face several systematic challenges that limit their financial security, working conditions and long-term well-being.
Absence of Minimum wage & Occupational Security: The earning of Gig workers is unpredictable. Most gig jobs are low skill or semi- skilled, offering few opportunities for carrier progression. As an example, a food delivery partner earns variable amounts depending on peak hours, weather, order and volume leading to his irregular income even in a time bound schedule with unfair treatment as an addition. The Fairwork India Ratings 2024 report evaluates the working conditions of platform workers in India, highlighting that digital labour platform aggregators show a lack of commitment to ensuring local living wages and recognizing workers’ collective rights.
Occupational Hazards & Health Risks: ‘Gig work often involves physically demanding tasks, such as delivery or ride sharing, exposing workers to health and safety risks. They are excluded from the Industrial Relations Code 2020 and its dispute resolution mechanisms.’ Workers are prone to road accidents, stress and physical strain. It is to highlight that no accident insurance or medical reimbursement is standard for the workers.
Lack of Worker Rights and Cryptic Employment Relations: Gig workers are categorized as independent contractors beyond the traditional employer- employee relationship. Hence, they aren’t formally included in the chapters of social security. Most of them are not covered under health insurance, paid leave, pension. In 2023, Swiggy delivery workers staged significant strikes in various cities across India, highlighting their demands for better working conditions, fair wages, and improved benefits.
Gender Disparity & safety Concerns: only 28% gig workers are women in India. Various examples can be noted where women delivery agents face challenges working at night or unfamiliar locations. The lack of gender sensitive infrastructure makes the women workers prone to face danger. The protest of India’s first women led gig workers’ strike outside the office of Urban Company in Gurugram for poor safety condition was a remarkable one. The protest was eventually called off following the imposition of Section 144 of the Criminal Procedure Code in Gurugram. Balancing the family and the carrier needs with full time working suffocates the identity of a woman too.
Exploitation of workers: gig workers often depend on smartphones and digital literacy. The rural workers fail to accommodate with the navigation of technologies and algorithm-based works. The unregulated contractors thus use them as a tool of exploitation & trafficking. However, the term “platform paternalism” has emerged to describe the perpetuation of caste and class hierarchies, trapping workers in jobs with very little security and no potential for long-term growth.As an instance a deeply criticised platform BookmyBai which helps people to hire house maids and caretakers.
Talent management: ‘Talent management is term coined for and focuses on full time employees. The entire talent portfolio comprises of HR policies, processes and philosophies that are meant for managing both internal and external partnerships. It needs a complete paradigm shift to change the mindset of the organizations on the way they can manage the contingent workforce thereby focusing on Talent portfolio management vis a vis talent management which was the focus till date.’
Landmark Case
‘ In The Indian Federation of App-Based Transport Workers (IFAT) v. Union of India , a coalition of 35,000 Ola/Uber/Zomato/Swiggy drivers and delivery workers petitioned the Supreme Court for recognition of gig workers as “unorganised workers” entitled to social security and fundamental rights.
They argue that by classifying themselves as ‘partners’, companies have evaded obligations, effectively denying basic entitlements under Acts like ESI, PF, Gratuity, Maternity, and the 2008 Act. In hearings (Nov 2024, Jan 2025), the Court expressed frustration at the Union’s delay in responding, stressing that gig workers have urgent rights to health insurance, pension, etc. The Court granted the government a final deadline to reply, noting it cannot invoke mere “policy decision” to dodge statutory duties.’
Though the case remains pending, it raises few serious questions
“employees”/”workmen” under labour laws?
Do they have a right to equality (Articles 14,21) when denied what organised-sector employees get?
In Ms X v. Internal Complaints Committee, ANI Technologies (Ola) the court held that an Ola driver was an “employee” of Ola for purposes of the Sexual Harassment of Women at Workplace Act, 2013. The petition, filed by a passenger allegedly assaulted by a driver, challenged Ola’s refusal to convene an ICC on grounds that the driver was merely a “partner”, not an “employee”. This landmark ruling (the first of its kind) implies that, at least in some contexts, platform drivers can be considered employees when the platform exercises sufficient control.
Government initiatives for gig workers in India
Labour falls in the Concurrent List of the Constitution, meaning both the Centre and states have jurisdiction over the sector.
Code on Social Security, 2020: The Code on Social Security, 2020 provides for framing of suitable social security measures for gig workers and platform workers on matters relating to life and disability cover, accident insurance, health and maternity benefits, old age protection, etc. Section 113 of the Code on Social Security, 2020 provides for registration of unorganized workers, gig workers and platform workers.
E-shram Portal: E-shram portal; a national database was launched by the Governments for the registration of the gig worker, ensuring their existence for various welfare schemes. It is a pilot initiative by the Ministry of Labour & Employment. As part of this pilot, four leading aggregators—Urban Company, Zomato, Blinkit, and Uncle Delivery—have already registered.
Rajasthan Act: Rajasthan being the first state to enact law for gig workers. Platform Based Gig Workers (Registration and Welfare) Act on July 24, 2023 was enacted for board and unique IDs for workers, and a system to monitor payments through a Central Transaction Information and Management System (CTIMS).
Karnataka Act: Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill-2024 provides provisions against unjust dismissal of gig workers and a dispute resolution mechanism.
Additionally in the state like Tamil Nadu the state offers a 20,000 subsidy for e-scooter purchases to select gig workers and provides insurance coverage for accidental death and disability.
“The gig workforce is a vital pillar of India’s new-age economy, driving innovation and efficiency across digital platforms. Recognizing their contribution, the Government’s decision to provide them with identity cards, e-Shram registration, and healthcare security under PM Jan Arogya Yojana is a transformative step towards their social security and well-being. This initiative will empower nearly 1 crore gig workers. Beyond this, the Government remains committed to extending social security benefits to workers in other unorganised sectors as well, ensuring dignity, security, and prosperity for every worker in the country,” said Dr. Mansukh Mandaviya.
The budget of 2024-2025 worked as stepping stone towards promoting welfare and justice for the gig workers. Dr. Mandaviya highlighted the significance of this historic allocation, stating:
“I thank Hon’ble Prime Minister Shri Narendra Modi Ji for this historic budget which is the highest ever and almost 80% higher than last year’s revised estimates. Our focus is firmly on the newly announced Employment Generation Scheme (ELI), for which the budgetary allocation has been doubled from ₹10,000 crore to ₹20,000 crore. The allocation under the Employees’ Pension Scheme has been increased by ₹300 crores and under the PM Shram Yogi Maandhan Yojana by 37% compared to last year.”
Conclusion
The rise of the gig economy in India has created new opportunities for flexible employment, but it has also exposed workers to significant vulnerabilities—ranging from lack of job security and social protection to inconsistent incomes and poor working conditions. Recognizing these challenges, both the central and state governments have begun implementing a range of initiatives. While these steps mark important progress, the true test lies in effective implementation and ensuring that benefits reach all gig workers across platforms and regions. As India continues to digitize and innovate, the gig economy is likely to expand further. A sustainable future for gig work will depend on a balanced framework that safeguards worker rights while supporting innovation and business growth. With thoughtful policy design, collaborative governance, and continued advocacy, India has the potential to build a gig economy that is not only dynamic but also inclusive and equitable.
FAQs
What is the projected size of India’s gig economy by 2030?
Ans- By 2030, India is expected to have the third-largest gig workforce, with approximately 23.5 million workers. Gig workers are estimated to make up 6.7% of the non-agricultural workforce and 4.1% of total livelihood by 2029-30.
What are the main challenges faced by gig workers in India?
Ans- Irregular income & absence of minimum wages, Occupational hazards & lack of insurance, Exclusion from formal labour rights and benefits, Gender disparity and unsafe working conditions for women, Digital illiteracy & exploitation by unregulated contractors, Lack of talent management frameworks.
What are some landmark legal cases related to gig workers in India?
Ans- IFAT v. Union of India: Petition by 35,000 app-based workers seeking recognition as unorganised workers for social security. Another one is Ms X v. ICC, ANI Technologies (Ola): Held that Ola drivers could be considered employees for the purpose of sexual harassment laws.
What is the e-Shram portal?
Ans- The e-Shram Portal is a government initiative to create a national database of unorganised, gig, and platform workers for better access to welfare schemes and social security benefits.
What initiatives has the Central Government taken for gig workers in Budget 2024-25?
Ans- ₹20,000 crore allocation for the Employment Generation Scheme (ELI), Increased funding for Employees, Pension Scheme and PM Shram Yogi Maandhan Yojana Support for gig worker registration, healthcare under PM Jan Arogya Yojana, and identity cards for nearly 1 crore gig workers.
What is “platform paternalism” in the gig economy context?
Ans- It refers to control and exploitation of gig workers by platforms, where algorithmic management and lack of regulation reinforce class, caste, and economic hierarchies, limiting upward mobility and job security.
Reference
Gig worker – Wikipedia
Drishti IAS PDFhttps://www.drishtiias.com
JETIR1811661.pdf https://www.jetir.org/papers/JETIR1811661
file:///C:/Users/abc/Downloads/GigWokersinIndia *GigWokersinIndia.pdf
Employment Without Protection: A Legal Analysis of Gig Work in India
Gig Workers in India – Challenges and Way Forward – Explained Pointwise |ForumIAS
Press Release:Press Information Bureau
