India’s gig economy is growing rapidly, and it’s likely impacting your life in more ways than you think. Whether you’ve ordered food late at night or taken a ride to work, gig workers have made these conveniences possible. But there’s much more to the gig economy than delivery drivers and cab services—it includes freelancers in fields like IT, content creation, design, and more.
Interestingly, the term “gig” actually comes from the music world, where musicians would take on one-off assignments outside their usual work. Today, the gig economy has grown into a massive network of workers who perform various jobs, either through online platforms or independently.
Let’s take a deeper look at what India’s gig economy really is, how it’s expanding, and what role it plays in the country’s workforce.
How Big Is India’s Gig Economy?
One of the biggest populations of gig workers worldwide is in India. Though it’s hard to pinpoint an exact number, estimates suggest that anywhere between 8 million and 18 million people are part of this workforce. According to a Niti Aayog research from 2021, there were 7.7 million gig workers in India who were actively employed; by 2030, this number is predicted to increase to 23.5 million. This would make India the third-largest gig workforce globally.
During the epidemic, the gig economy received a lot of attention. With millions of people losing their regular jobs, the gig economy became a safety net for many. Ride-hailing services like Uber and Ola took a hit during the lockdowns, but e-commerce platforms and food delivery services, such as Amazon and Zomato, became lifelines for those seeking work.
According to the International Labour Organisation (ILO), over one-third of gig workers they interviewed joined the gig economy after April 2020 due to limited job opportunities and the ease of starting gig work. According to a Nasscom report, the percentage of Indian businesses using gig workers increased from 57% in 2020 to two-thirds by 2022.
But where are these gig workers actually working?
Where Are Gig Workers Employed?
A report from Niti Aayog revealed that the retail sector employs 40% of India’s gig workers. The transportation and storage sector comes next, with 20% of gig workers. The manufacturing sector accounts for 10% of gig employment. These three sectors make up the majority of gig worker employment in India.
Most gig jobs are found in food delivery, e-commerce deliveries, and personal services like repairs and cab driving. These roles typically require medium skills. Some jobs need low-skilled workers, while a smaller portion involves high-skilled work. High-skilled jobs include IT and specialized services.
By 2030, the personal services industry, including roles like beauticians and babysitters, is expected to create more gig jobs. Other key growth areas include construction, real estate, and logistics. These sectors are likely to continue attracting gig workers. The demand for gig workers in these industries is projected to rise significantly.
The demand for gig workers is rising, especially during festive seasons in India. During these times, online retailers and businesses experience a significant boost in sales. For example, during the last Diwali season, Amazon saw a 35% increase in sales from small and medium businesses. Similarly, Flipkart’s festive shopping event led to a 2.5 times increase in business for sellers. To manage this surge, companies typically hire temporary workers, especially delivery riders. This helps them ensure smooth operations during the busy periods. This year, e-commerce platforms are expected to increase their workforce by 20% to 40% during the festive season.
Challenges Facing Gig Workers
While the gig economy provides flexibility and job opportunities, it also comes with challenges. Many gig workers, especially delivery riders and drivers, complain of long working hours, sometimes stretching beyond 10-12 hours per day. Despite the long hours, their income can be unpredictable, especially when demand is low.
Another major concern for gig workers is the lack of social security benefits. Since gig workers are not traditionally employed, they do not receive benefits like health insurance, retirement plans, or paid leave. This makes it difficult for them to survive during periods of low demand or in their later years when they may no longer be able to work.
Although these issues persist, a study by the ILO found that most gig workers do not want to leave their jobs. Many value the gig economy’s flexibility and comparatively simple entrance. To enhance their working conditions, nevertheless, initiatives are being undertaken. For instance, state governments in Rajasthan and Karnataka are working to include gig workers in welfare schemes. In an effort to provide them with social security benefits, the federal government is also hoping to include them in the e-Shram portal.
Additionally, businesses are stepping up to offer services for gig workers. HDFC Bank, for example, has introduced the GIGA financial suite, which provides savings accounts, credit cards, insurance, and loan products specifically for gig workers.
The Bottomline
As India’s gig economy continues to grow, it is changing the face of work in the country. Gig workers are becoming an indispensable part of daily life, doing everything from food delivery to freelance design. While the gig economy offers numerous opportunities, it also raises important questions about fair wages, working conditions, and social security for the workers who keep it going.
Despite these challenges, one thing is clear: India’s gig economy is on the rise and will continue to play a significant role in shaping the future of work in the country.
