Number of Gig & Platform Workers in India

Syllabus :GS3/Economy

In News

• The government said that the number of gig workers and platform workers in the country is expected to rise to 23.5 million by 2029-30.

What Are Gig Workers?

• Gig workers are individuals who engage in temporary or flexible jobs, often through online platforms. 
• They are part of the gig economy, which is characterized by freelance, short-term, or on-demand work rather than traditional, full-time employment.
  • The gig economy in India has seen significant growth in recent years, driven by the widespread adoption of digital technologies and the proliferation of online platforms.
• The gig and platform economy is an emerging sector with significant growth and employment potential. 

Status in India 

• As per NITI Aayog’s report “India’s Booming Gig and Platform Economy” (June 2022), there were 7.7 million gig and platform workers in India in 2020-21, including women.
• According to the Economic Survey 2020-21, India has become one of the world’s largest countries for flexi-staffing (gig and platform work). This form of work is expected to continue growing, particularly with the expansion of e-commerce platforms.

Impacts 

• Macro: The gig economy has had a substantial impact on India’s economy.
  •  It has provided employment opportunities to millions of people, particularly in urban areas
• Micro: Gig work offers several benefits for workers, including flexibility, independence, and the ability to earn additional income.
  •  Many gig workers appreciate the freedom to set their own schedules and work on multiple projects simultaneously.

Challenges 

• Gig workers in India have protested over issues like revenue sharing, working hours, and employment conditions.
  • These issues are hard to address within the current legal framework, which is designed for traditional employer-employee relationships.
• Lack of Legal Protection: Without recognizing employment relations, gig workers lack access to labor law protections, such as Occupational safety and health standards etc.
• Income Instability: There is no guaranteed minimum earnings, and workers may not earn consistently, even if available for long hours.
• Unregulated Working Hours: Gig workers, like app-cab drivers, often work late into the night or early mornings, leading to safety concerns, including accidents.

Measures 

• For the first time, the Code on Social Security, 2020 provides definitions for ‘gig workers’ and ‘platform workers’ and outlines provisions related to them.
• The Code on Social Security, 2020 includes the provision for framing social security measures for gig and platform workers, covering areas like:
  • Life and disability cover
  • Accident insurance
  • Health and maternity benefits
  • Old-age protection

Conclusion and Way Forward 

• The gig economy in India is a dynamic and growing sector that offers numerous opportunities for workers and businesses alike. 
• However, to fully harness its potential, it is essential to address the challenges faced by gig workers and create a supportive regulatory framework.
• With the right policies and initiatives, the gig economy can contribute significantly to India’s economic growth and provide sustainable employment for millions of people.

Source :Air