According to TeamLease, India’s burgeoning gig economy is poised for significant expansion, with employment within the sector expected to double in the next five years. Unlike traditional forms of employment, gig work presents unique challenges, particularly when it comes to protecting labour rights. Crafting a regulatory framework for platform workers is a complex task, one that must balance flexibility with inclusivity. Any policy intervention must avoid rigid structures while addressing critical issues such as mobility, working conditions, social security, and bargaining power.
Gig work in India must be formally recognised as employment, with conditions that clearly define its scope and parameters. In a landmark move, the Indian government has already taken initial steps by incorporating platform work into a separate labour code, laying the groundwork for meaningful change. Furthermore, measures to expand publicly funded social security for gig workers were introduced, with the 2025 budget announcing the provision of healthcare benefits under govt schemes. In this regard, private companies are encouraged to adopt similar measures to safeguard the well-being of their workers.
The approach adopted by the government aims to strike a delicate balance. By refraining from strictly categorising gig work as conventional employment, the risk of stifling e-commerce growth is mitigated. At the same time, avoiding the classification of gig workers as self-employed ensures that they retain access to formal social security benefits. Looking ahead, future interventions must take into account the fluid and dynamic nature of the gig economy. Key considerations include facilitating access to credit that accommodates income fluctuations, ensuring portability of social security benefits, providing skill development opportunities for upward mobility, safeguarding workers from algorithmic shifts in contract terms, and ensuring that pay parity is maintained with formal employment wages.
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Access to insurance is another critical issue that must be addressed. Given that gig work often involves navigating crowded, poorly regulated transportation infrastructure, this challenge becomes even more urgent as the sector extends its reach beyond metropolitan areas into smaller towns and rural locations.
Moreover, policy must account for the potential imbalance in bargaining power exacerbated by the increasing use of AI in platform work. With technology at the helm of many gig-based businesses, ensuring that workers' rights are upheld in an era of automation becomes imperative. Equally important is the issue of skilling. Without adequate opportunities for career progression, the pool of workers willing to take on low-paid, dead-end gig jobs may rapidly shrink. However, as technology continues to evolve, so too do the opportunities for individual advancement. As the platform economy increasingly competes with traditional distribution channels, it must also focus on cultivating its own talent pool to maintain a sustainable workforce.
India’s gig economy stands at a pivotal juncture, and with thoughtful regulation, it has the potential to thrive, benefiting both workers and employers alike.
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