India’s gig economy is experiencing significant growth and is projected to expand at a compounded annual growth rate (CAGR) of 17%. According to a white paper from the Forum for Progressive Gig Workers, the sector’s gross volume is expected to reach US$ 455 billion (Rs. 38,42,475 crore) by FY24. This growth is anticipated to contribute to India’s GDP, with an estimated 1.25% contribution by FY30, indicating the increasing importance of the gig economy in India’s economic landscape. The gig economy is not only reshaping industries but also creating new job opportunities across various sectors like e-commerce, transportation, and delivery services.

The growing gig economy is projected to generate approximately 90 million jobs over the long term, making it a key driver of employment in India. The rise of gig workers has been fueled by the flexibility and independence it offers, allowing workers to balance multiple income streams, particularly in tier-II and tier-III cities, which are emerging as growth hubs for gig-based work. The white paper highlights that, by FY30, the gig economy is expected to employ around 23.5 million workers, with women seeing an increasing share of opportunities in this sector.

The report stresses the positive impacts of gig work, including providing alternative revenue streams and increasing opportunities for women in the workforce. As the sector grows, gig work is fostering broader workforce integration, with more people, including those in underserved areas, able to access employment opportunities that were previously out of reach. E-commerce platforms, such as Amazon and Flipkart, along with food delivery services like Zomato and Swiggy, are at the forefront of this transformation, employing millions of workers in flexible, on-demand roles.

To enhance the working conditions for gig workers, many companies have been implementing welfare initiatives. For instance, during the monsoon season, workers are being provided with raincoats, and resting areas and water are being made available to workers during extreme weather conditions. These initiatives aim to improve the overall well-being of gig workers, ensuring they have the support they need to perform their tasks effectively, especially in physically demanding roles. This highlights the importance of corporate responsibility in ensuring that gig workers have access to basic welfare support.

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However, while welfare measures are beneficial, experts caution against equating full-time and gig work in terms of employment benefits. Overburdening employers with excessive welfare requirements could undermine the flexibility that defines the gig economy, and may create a disincentive for companies to engage with gig workers. Panellists at the webinar emphasized the need for a balanced approach, urging the establishment of industry-best practices and flexible, standardised guidelines to improve efficiency in the gig economy. This would ensure that gig workers continue to benefit from the flexibility of the sector, while still receiving adequate support from employers.

The gig economy is positioned to play a major role in India’s economic growth, offering a new avenue for employment generation and economic activity. As the economy continues to evolve, companies and policymakers will need to ensure that gig workers are adequately supported, while also maintaining the flexibility that allows this sector to thrive. It is expected that the growing gig workforce will contribute significantly to India’s GDP, making it an essential pillar of the country’s economic future.

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