Rapid Expansion of Gig Workforce in India

General Studies Paper-3

Context: Recently, VV Giri National Labour Institute (VVGNLI) forecasted that the Gig workforce in India, making up 15% of the country’s total non-agricultural workforce.

• It builds on estimates from NITI Aayog’s 2022 gig workforce report.

Key Findings & Projections of Study

• Approximately 3 million workers were engaged in platform jobs across 11 major companies in 2020.
• It is expected to reach 23 million, making up 7% of the non-agricultural workforce by 2030, and is projected to more than double, reaching 62 million workers by 2047.
• It could generate up to 90.8 million jobs under aspirational growth scenarios, but economic and regulatory uncertainties could limit growth to 32.5 million.
• Sectoral Expansion: Initially concentrated in ride-sharing and food delivery, gig jobs have diversified into healthcare, education, creative services, and professional consulting with the rapid rise of app-based services and shifting work preferences.

Challenges and Regulatory Gaps

• Lack of Social Security: Gig workers often operate without health benefits, insurance, or retirement provisions.
• Long Working Hours and Stress: Unregulated working hours, erratic schedules, and heavy workloads lead to stress and health safety issues.
• Absence of Grievance Redressal Mechanisms: Workers who raise concerns or speak out against unfair practices often face retaliation, including instances like ID blocking.

Regulatory Considerations Highlighted in Study

• Worker Rights & Unionisation: The study calls for legal recognition of gig workers, including the right to unionize and collectively bargain.
  • Transparency in task allocation algorithms is crucial for fair pay distribution and improved working conditions.
• Classification & Legal Protections: Countries like the UK, Canada, Spain, and France legally differentiate workers from independent contractors, ensuring access to labor protections and social security.
  • India needs clear classification criteria to address worker vulnerabilities.
• Fair Wages & Algorithmic Accountability: The study recommends policies to:
  • Ensure minimum income guarantees
  • Regulate working hours
  • Increase transparency in gig work assignments
  • Enhance grievance redressal mechanisms
• National Registry for Gig Workers: A statutory registry (i.e. National Platform Worker Registry), managed by central and state governments, could help streamline social security access for gig employees.
  • Integration of occupational health and safety standards in platform-based work.

Other Policies & Initiatives

• Code on Social Security, 2020: It aims to extend social security benefits to gig and platform workers.
  • It proposes the creation of a social security fund, financed through contributions from aggregators, to provide health insurance, pension schemes, and accident coverage.
• Skill Development & Training: Programs focused on upskilling gig workers in areas like digital literacy, entrepreneurship, and specialized trades are being encouraged to enhance employability.