Gig work: Opportunity or challenge?

The gig economy is no longer just a side hustle option - it is becoming a significant part of the workforce, with projections showing continuous expansion. By 2030, the number of gig workers will soar to 23.5 million, up from 7 million in 2021, making up 4.1% of the workforce, compared to 1.5% in 2021. Companies across IT, logistics, e-commerce, and retail are embracing gig workers for their flexibility and efficiency.

Beyond the 9-to-5: What exactly is gig work?

For the first time ever, India formally acknowledged the gig economy in its legal framework through the Social Security Bill, 2020. But what does that mean? Think of gig workers as professionals who don’t fit into the traditional 9-to-5 employer-employee setup. Instead, they enjoy the flexibility of choosing their own projects and schedules.

Under the bill, gig workers are classified into two major categories:

• Platform gig workers: If you’ve ever booked a ride on Ola or Uber, ordered food from Swiggy or Zomato, or received groceries from Blinkit or Zepto, you’ve interacted with a platform gig worker!

• Non-platform gig workers: Not all gig workers rely on apps! This includes freelancers, contract-based professionals, and self-employed workers in fields like IT, marketing, design, and consulting.

Gig work by skill category: A closer look

This chart provides a detailed breakdown of the percentage of gig work employment in India from 2012 to 2020, with projections up to 2030. It reveals how gig workers are categorized by skill level:

Source: Statista

• High-skilled roles: Increasing from 17.2% in 2012 to a projected 27.5% in 2030, highlighting the rising demand for expertise in IT, consulting, and other specialised fields. These jobs often involve complex problem-solving, strategic decision-making, and innovation. Examples include data scientists, cybersecurity analysts, management consultants, and software engineers.

• Medium-skilled roles: Although declining slightly, this category continues to represent a significant share, projected at 38.7% by 2030, driven by roles in logistics and e-commerce. Medium-skilled roles usually require a combination of technical skills, vocational training, or work experience. Examples include warehouse supervisors, truck drivers, technicians, and administrative support staff.

• Low-Skilled Roles: Dropping steadily, this category will account for 24.7% in 2030, reflecting a shift toward upskilling and automation. Examples include delivery workers, cashiers, janitorial staff, and basic data entry clerks.

The flip side

Riders and delivery executives, who form a significant part of the growing gig economy, often face grueling challenges. With long working hours - frequently exceeding 10–12 hours a day - paired with low income and a lack of social security, these workers are left vulnerable during layoffs and in old age.

Business standard

Despite these struggles, a study by the International Labour Organization (ILO) found that only a small fraction of workers expressed a desire to leave this type of employment. This highlights a paradox: while the challenges are undeniable, many workers still value the flexibility and opportunities these roles offer.

Budget 2025: A turning point for Indian gig workers

The Union Budget 2025 put gig workers front and center, with the Finance Minister recognizing their pivotal role in driving India’s new-age services economy. To support this growing workforce, the government rolled out initiatives aimed at providing formal recognition and social security.

What’s in store for gig workers?

Identity Cards and e-Shram Portal Registration

Gig workers will be issued identity cards and registered on the e-Shram portal, a government initiative launched in August 2021 to create a centralized database of India’s unorganised workforce, including gig and platform workers. Registration on e-Shram enables gig workers to access social security schemes, formalising their employment status and making them eligible for targeted government benefits.

This move is expected to positively impact one crore gig workers, granting them both recognition and access to welfare measures.

Healthcare Benefits Under PM-JAY

Gig workers will gain access to healthcare benefits through the Pradhan Mantri Jan Arogya Yojana (PM-JAY), one of the world’s largest government healthcare programs. PM-JAY provides free medical insurance coverage of up to ₹5 lakh per family per year for secondary and tertiary care hospitalisation. This ensures that gig workers have a financial safety net for health emergencies, addressing a critical gap in their social security.

The inclusion of gig workers under PM-JAY reflects a significant step toward improving their overall well-being.

Budget 2025 doesn't just secure gig workers’ present - it lays the groundwork for a future where flexible workforces are empowered, protected, and seen as an integral part of India’s economic transformation.

In summary

Millions power the gig economy, yet many remain unprotected and underpaid. While Budget 2025 introduces critical reforms, the focus must shift from short-term fixes to lasting solutions - ensuring fair pay, security, and benefits. Growth alone isn’t progress - true success means making gig work sustainable for workers, not just businesses. A thriving gig economy isn’t just about creating jobs; it’s about creating jobs that offer dignity, stability, and a future.