Indian gig economy to have 23.5 mn workers by 2029-30: Niti Aayog report

The Indian gig workforce is expected to expand to 23.5 million workers by 2029-30, a near 200 per cent jump from 7.7 million now, according to a first-of-its-kind report by NITI Aayog released on Monday.

The report ‘India’s Booming Gig and Platform Economy’ estimates that gig workers will form 4.1 per cent of the total workforce in India by FY30, from 1.5 per cent now. The report stated that gig work is expanding in all sectors, but 47 per cent of the jobs are medium-skilled, about 22 per cent are high-skilled, and about 31 per cent are low-skilled.

Gig workers — those engaged in livelihoods outside the traditional employer-employee arrangement — can be broadly classified into platform and non-platform-based workers. Platform workers are those whose work is based on online software apps or digital platforms such as food aggregator platforms Zomato, Swiggy, Ola, and others.

Non-platform gig workers are generally casual wage and own-account workers in conventional sectors, engaged part-time or full-time.

The report also talks about rising challenges of the sector that need to be addressed. Top among them are the lack of job security, irregularity of wages and uncertain employment status for workers. Additionally, the contractual relationship between the platform owner and worker is characterised as other than one of employment. Platform workers are termed as “independent contractors”. As a result, platform workers cannot access many of the workplace protections and entitlements.

NITI Aayog recommends extending social security measures to gig workers and their families, including sick leave, insurance, and pension.

“The gig and platform sector has low-entry barriers and, hence, holds enormous potential for job creation in India. The sector offers better income opportunities to those previously engaged in similar non-platform jobs. It can, thus, work as a catalyst for occupational mobility,” it said.

Industry players, however, said rather than a comprehensive report its time for some execution.

“It is indeed a commendable work from NITI Aayog to come out with a detailed report on the gig workers and economy. We need to bridge the gap between soliciting comments and actual implementation. We have to take concrete steps but are faltering in its execution. And we need to ask if this is helping the gig workers,” said Rituparna Chakraborty, co-founder and executive director, Teamlease.

The report stated that there is a need to undertake a more detailed study to estimate the size of the gig economy and identify the characteristic features of the workers.

“During official enumerations (PLFS, NSS, or otherwise), collect information to identify gig workers. This could include questions on the nature of contract between worker and job creator, use of technology in work, etc.,” it said.

National Association of Software Services Companies (Nasscom) said the Covid-19 pandemic has caused shifts in work, workforce, workplace, and work culture that has also invariably established the next normal in the future of work.

“Today, gig model of workforce is evolving beyond its use for pure situational augmentation to become a prominent capacity and capability development model that will emerge as a key component of the bended workforce model of the future. Although still in its nascent phases, as hybrid work models continue to evolve, favourable government policies to support India’s knowledge economy will further accelerate gig models leading to availability of a wider talent pool and job creation,” said a statement from Nasscom.

The report asks for increasing access of finance. Fintech and platform businesses may be leveraged to provide cash flow-based loans to workers as against collateral-based loans, thereby catering to the needs of those new to credit. It also said unsecured loans to first-time borrowers participating in the platform economy may be classified as priority sector lending.

It noted that “platformisation” of work has given rise to a new classification of labour — platform labour — falling outside of the purview of the traditional dichotomy of formal and informal labour.

The report also talks about the need for policy to keep pace with platforms. “Policies designed by platform firms and governments need to keep in mind specific characteristics of workers in these sectors. India requires a framework that balances the flexibility offered by platforms while also ensuring social security of workers," said the report.