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India’s gig and platform economy is undergoing a significant transformation, driven by digital technologies, evolving labour market dynamics, and an increasing preference for flexible work arrangements. According to a recent study by the VV Giri National Labour Institute (VVGNLI), affiliated with the Ministry of Labour and Employment, India’s gig workforce is projected to grow to 62 million by 2047, accounting for 15% of the total non-agricultural workforce.

This forecast builds on estimates from the 2022 NITI Aayog report, which pegged the number of gig workers at 3 million in 2020, employed across 11 major platform companies. This figure is expected to rise to 23 million by 2030 (7% of the non-farm workforce). Under optimistic scenarios, gig employment could expand to 90.8 million, though external shocks like policy shifts or technological disruptions may cap growth at 32.5 million.

The gig economy in India initially found its foothold in ride-sharing and food delivery services. Over time, it has diversified into sectors such as healthcare, education, digital content creation, and professional consulting, indicating its expanding relevance in the overall employment landscape.

Despite this rapid growth, gig workers face significant structural challenges. These include the lack of social security, unregulated working hours, occupational stress, and the absence of effective grievance redressal mechanisms. Many gig workers are also vulnerable to retaliatory practices, such as app-based ID deactivation, for voicing concerns against unfair algorithms or wage-related issues.

One of the most pressing issues highlighted by the study is the ambiguous classification of gig workers. While countries such as the UK, Canada, Spain, France, and Denmark have legally recognised gig workers and provided appropriate labour protections, India continues to grapple with defining the boundary between employees and independent contractors. This ambiguity deprives workers of legal safeguards, especially those working full-time on digital platforms.

The VVGNLI study calls for urgent regulatory interventions. These include:

• Legal recognition of gig workers and their right to unionize and collectively bargain.
• Algorithmic accountability, to ensure transparency in task allocation and wage determination.
• Minimum income guarantees, regulated working hours, and integration of occupational health and safety standards.
• Establishing a National Registry for Platform and Gig Workers, managed jointly by central and state governments, to facilitate social security coverage.

Additionally, the Code on Social Security, 2020, provides a legislative foundation to extend health insurance, accident coverage, and retirement benefits to gig and platform workers. It proposes a social security fund, with contributions from aggregators, to support these provisions.

To ensure long-term sustainability, the government must also invest in skill development and upskilling initiatives, particularly in digital literacy, entrepreneurship, and emerging trades, to improve employability and economic resilience among gig workers.

In conclusion, India’s gig economy holds the potential to redefine employment patterns and contribute substantially to inclusive economic growth. However, this potential can only be fully realised through a rights-based, inclusive, and regulation-driven framework that balances innovation with worker welfare.