GIG WORKERS IN THE INDINA ECONOMY 2025
AUTHOR – PRAVEEN SAVARAPU, RESEARCH SCHOLAR AT UNIVERSITY OF MYSORE
BEST CITATION – PRAVEEN SAVARAPU, GIG WORKERS IN THE INDINA ECONOMY 2025, ILE LABOUR LAW REVIEW, 4 (1) OF 2025, PG. 23-34, APIS – 3920 – 0009 | ISSN – 2583-6161.
The gig economy in India has witnessed substantial growth, contributing significantly to employment and economic activities. NITI Aayog (2022)[1] estimated the Gig & Platform workforce to be around 77 lakhs in 2021, likely to increase to 2.35 Crores in 2029-30, constituting 4.1% of the total workforce. BCG estimates the gig economy could support 90 million non-farm jobs, generate USD 250 billion in work, and boost GDP by 1.25% (BCG, 2021). These workers are engaged across diverse sectors, such as ride-sharing, food delivery, and freelance services, which are vital in driving the country’s economy.
The growth of the platform economy has led to the need for a legal framework to regulate work conditions and protect the rights of gig workers. Although platforms were initially conceived as flexible options to realise additional income, workers have become increasingly dependent on platform-based aggregators for their livelihoods, often making the platform work their primary source of income. The platform economy has become a major creator of unskilled and semi-skilled jobs for lakhs, many of whom have given up agricultural work and migrated to urban centres for gig employment.
However, despite their crucial contributions, many gig workers face precarious working conditions, including income instability, lack of health benefits, and the absence of formal social security mechanisms. The nature of their contracts has further exacerbated this situation, often leaving them without access to traditional employment benefits like health insurance, paid leave, and pensions. In response to these challenges, recent budget announcements have emphasised the need for a formalised support structure for gig workers. The 2025 Union Budget[2] includes provisions to integrate gig workers into India’s social security framework, such as offering health insurance through the Pradhan Mantri Jan Arogya Yojana (PM-JAY). It plans to establish a national database for gig workers, providing them with access to essential services like housing, skill development, insurance, and food security.
These efforts highlight the urgent need to address the welfare of gig workers and underscore the importance of creating a robust social security architecture that ensures their protection, stability, and well-being in the rapidly evolving labour market.For Gig workers, the committee comprises representatives from Telangana, Karnataka, Haryana, Madhya Pradesh, and Rajasthan, with Telangana hosting the first round of consultations.
[1] Niti Ayog India’s Booming Gig and Platform Economy, perspective and recommendations on future of work
[2] Union budget 2025-2026