India stands at the crossroads of a labour market transformation. The rise of gig and platform-based work is reshaping employment patterns in the country, creating millions of opportunities in cities and semi-urban towns while simultaneously raising serious questions about job security and social protections. With its half-a-billion-strong labour force, a demographic advantage as the world’s youngest population, and rapid digital adoption, India is emerging as a global hub for gig-driven transformation.
According to official data, the gig economy, defined broadly as work outside traditional employer-employee arrangements, has already established a strong foothold in ridesharing, food delivery, logistics, and app-based freelance services. Government estimates suggest that over one crore Indians will be engaged in gig work by 2024-25, while NITI Aayog projects that this number will more than double to 2.35 crore by 2029-30. Such figures highlight both the opportunities and the urgency of policy intervention in this fast-expanding sector.
Shifting Labour Market
Unlike conventional jobs, gig and platform work operate almost entirely through digital ecosystems. Smartphone apps connect workers with customers in real time, revolutionising service delivery and consumer convenience. From cab aggregators and doorstep grocery delivery to freelance designers and online tutors, gig work is now embedded in India’s daily life.
For many young Indians, these platforms offer not only a chance to earn supplemental income but also a flexible alternative to conventional employment. Students, homemakers, and migrants alike are leveraging gig platforms for financial independence. The model has democratised access to work opportunities, especially in urban and semi-urban settings where traditional job creation has not always kept pace with population growth.
However, this flexibility comes at a cost. Gig workers often operate without contracts, leaving them excluded from basic rights such as minimum wages, paid leave, health insurance, or pensions. For a large segment of workers who depend on platform-based earnings as their primary livelihood, this translates into financial vulnerability, especially in times of illness or economic downturns. Policymakers now face the delicate task of ensuring that the sector remains dynamic without compromising worker dignity.
Recognition through the social security code
A significant milestone came with the Code on Social Security, 2020, which for the first time in Indian labour law formally recognised “gig workers” and “platform workers.” The legislation consolidated nine earlier laws, including the Employees’ Provident Fund Act, the Maternity Benefit Act, and the Payment of Gratuity Act, into a comprehensive framework. By extending the promise of social security to employees in both organised and unorganised sectors, the Code widened the safety net. For gig workers, it envisages schemes covering provident funds, pensions, health and disability insurance, maternity benefits, and accident cover.
Importantly, it calls for a National Social Security Board dedicated to unorganised, gig, and platform workers, as well as a Social Security Fund financed through contributions from the government, digital platforms, and workers themselves. Labour ministry officials have stressed that this is not just legislative housekeeping but a recognition of the “vital role gig workers play in India’s economy.”
By formally including them in the country’s social security framework, the government has signalled its intent to ensure these workers are not left behind in India’s economic growth story.
Budget 2025-26: Policy push for platform workers
The momentum continued in the Union Budget 2025–26, which announced a series of targeted measures for gig workers. Among the most notable were:
1. Mandatory registration of all platform workers on the e-Shram portal
2. Issuance of official identity cards to facilitate welfare access
3. Extension of Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) benefits to gig workers
AB-PMJAY, India’s flagship health insurance scheme, offers coverage of up to Rs 5 lakh per family per year across more than 31,000 empanelled hospitals. The inclusion of gig workers within this framework was hailed as a long-awaited step, though questions remain about the speed and efficiency of the rollout.
e-Shram: Building a National Database
At the heart of India’s strategy is the e-Shram portal, launched in August 2021, which has become the backbone for registering unorganised workers. Each registrant receives a Universal Account Number (UAN), creating a portable identity for accessing benefits.
As of August 3, 2025, more than 30.98 crore unorganised workers had enrolled, including over 3.37 lakh gig and platform workers. Uttar Pradesh tops the registration charts with 8.39 crore workers, followed by Bihar (3 crore) and West Bengal (2.64 crore). Women form a significant share of registrations, over 4.41 crore in Uttar Pradesh alone, showing the gendered dimension of informal work.
Challenges that remain
While the recognition and registration of gig workers mark major progress, the road ahead remains fraught with challenges.
1. Implementation Gaps: Laws and announcements often take years to translate into functional benefits. For gig workers living hand-to-mouth, delays can undermine trust in the system.
2. Platform Compliance: Many companies operating in the gig economy are yet to meaningfully contribute to worker welfare funds. Ensuring their compliance will be critical.
3. Awareness and Access: Despite large-scale registration drives, many gig workers remain unaware of their rights or face hurdles in accessing benefits due to bureaucratic complexities.
4. Global Lessons: Countries like the UK and EU have already begun classifying gig workers as “dependent contractors,” extending limited rights such as minimum wage and paid leave. India’s challenge will be to tailor protections to its unique demographic and economic context without stifling innovation.
India’s gig economy is set to expand in the coming decade, driven by rising urbanisation, digital penetration, and consumer demand for convenience. It has the potential to not only generate livelihoods but also create a new class of digitally empowered workers.
However, growth without safeguards risks perpetuating insecurity and inequality. Analysts argue that timely rollout of social security schemes, portable health insurance, and greater accountability for platform companies are essential. Strengthening skill development initiatives could also help gig workers move up the value chain, from delivery services to higher-paying digital freelancing opportunities.
For now, initiatives such as the Social Security Code, the e-Shram portal, and the inclusion in AB-PMJAY represent a decisive policy shift. They mark an acknowledgement that gig workers are not just a temporary labour force but an integral part of India’s economic engine. India’s fast-growing gig economy is more than a trend, it is the future of work. It reflects the country’s digital aspirations, demographic strength, and entrepreneurial spirit.
Yet, it also exposes deep fault lines in labour protections and social welfare. Ultimately, India’s success in managing this transformation will be judged not just by GDP figures or app downloads, but by whether every gig worker, from a small-town cab driver to an urban freelancer, feels protected, valued, and included in the nation’s development journey.
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