27th November 2024, India: The Forum for Progressive Gig Workers today launched a whitepaper highlighting aspects around how the Gig Economy in India has played an important role in empowering the gig workers and in turn driving economic growth. The whitepaper was launched at a webinar organized today on ‘Shaping the Future of Work: Empowering India’s Gig Economy’ that brought together experts from academia, research institutions and think tanks talking about the opportunities that gig economy presents to India’s workforce landscape, making significant contributions to economic growth and sectoral innovation.
The white paper further underlines the positive impact of the gig economy, including alternate revenue streams for workers and scope for earnings for women and avenues of integration into the workforce. The gig economy market is expected to grow at a compound annual growth rate (CAGR) of 17% to reach a gross volume of $455 billion by 2024. Its contribution to India’s GDP is substantial, with estimates suggesting its potential to create 90 million jobs and add 1.25% to the country’s GDP over time. Gig economy supports sectors such as e-commerce, transportation and delivery services, among others.
Speaking at the launch of the whitepaper, K Narasimhan, Convenor, Forum for Progressive Gig Workers, stated, “The report presents an initial effort to analyze the evolving dynamics between large companies and gig workers. It is a valuable starting point for understanding the challenges and opportunities within this sector. At a later stage, we plan to collaborate with global organizations to release a formal report that provides deeper insights and actionable recommendations.”
Speaking at the webinar, Vinod Kumar, President, India SME Forum said, “India’s gig economy, fueled by digital platforms and characterized by flexible, short-term work, is poised for exponential growth—projected to employ 23.5 million gig workers and contribute 1.25% to GDP by 2030. With tier 2 and 3 cities emerging as growth hubs, and platforms driving welfare initiatives, the future of gig work lies in leveraging AI, predictive analytics, and digital innovation to create sustainable, inclusive opportunities.”
“Platform companies are increasingly prioritizing better working conditions for gig workers, from providing durable raincoats during monsoons to establishing resting areas and access to water during extreme weather. Companies like Amazon, Walmart’s Flipkart, Zomato, and Swiggy are actively implementing measures to ensure the well-being of their workforce, reflecting a commitment to creating safer and more supportive environments for gig workers. However, activism by organisations like Amazon Indian Workers Association or The Gig and Platform Services Workers Union (GIPSWU), driven by self-interest, risks undermining the genuine progress being made, potentially harming the very workers they claim to represent.” added Mr. Shriram Subramanian, Founder, InGovern Research Services.
Another panelist, Ms. Nirupama Soundararajan, Founder of Policy Consensus Centre said, “While social benefits for gig workers are essential, it’s crucial to maintain a distinction between full-time employment and gig work. Equalizing the two could disrupt the labor market, diminishing the appeal of full-time roles and impacting productivity and economic stability. Additionally, any framework for gig worker welfare must balance fairness with feasibility for companies—overburdening them risks stifling the very opportunities and flexibility that the gig economy provides.”
The panelists concurred that the gig economy is set to play a crucial role in India’s future workforce and economic growth and will be instrumental in driving job creation, reducing income disparities, and promoting innovation across sectors, however, it is imperative to adopt industry best practices, flexible and standardized guidelines that will be critical to enhance efficiency, support gig workers, and contribute to the country’s growth.
