India’s gig economy has surged dramatically in the last four years, positioning itself as one of the fastest-growing parts of the labor market. However, ongoing issues such as income volatility, inadequate access to credit, and limited social security still leave millions of workers vulnerable, as noted in the Economic Survey 2025–26 presented in Parliament.
The survey indicated that the number of gig and platform workers increased from 7.7 million in FY21 to 12 million in FY25, a staggering 55 percent rise. This growth has been fueled by factors like widespread smartphone adoption, stronger digital payment infrastructure, and the rise of app-based platforms across various sectors, including e-commerce, logistics, healthcare, and IT services.
Currently, gig workers represent over 2 percent of India’s total workforce, with their growth rate surpassing that of overall employment. Projections suggest that non-agricultural gig jobs will account for 6.7 percent of the workforce by 2029–30 and contribute an estimated ₹2.35 lakh crore (approximately $256 million) to the GDP.
The survey emphasized a structural transformation taking place in India’s labor market, where traditional permanent positions are increasingly being replaced by hybrid employment models that mix formality, contract work, and task-based arrangements. Digital platforms have altered employer-employee dynamics, often morphing direct relationships into tripartite systems mediated by algorithms.
Gig work, which is characterized as short-term, task-oriented employment facilitated through digital channels, provides flexibility regarding working hours and location. This aspect is particularly appealing for individuals balancing education, caregiving, or looking to supplement their income. However, such flexibility often comes at the expense of stability.
Despite the rapid growth of the gig economy, income insecurity remains a fundamental issue. Approximately 40 percent of gig workers earn less than ₹15,000 (around $163) per month. Irregular cash flows further hinder their ability to secure formal credit due to “thin-file” credit histories.
This precarious situation has led gig workers in various cities to protest against declining per-order payments, unclear incentive structures, and increasing pressure associated with rapid delivery demands. Workers using food delivery and transportation apps have raised concerns over the growing control of algorithms over job assignments and earnings, suggesting that the emphasis on faster delivery compromises both income stability and safety.
Algorithmic systems increasingly dictate work allocation and pay, raising significant issues related to transparency, bias, and worker fatigue. Additionally, limited opportunities for skill development and the looming threat of automation, artificial intelligence, and machine learning further intensify job insecurity, especially for low-skilled workers.
The survey’s insights resonate with recent policy discussions, with some states beginning to explore regulatory solutions to counter platform dominance. For instance, Karnataka has initiated a requirement for digital aggregators to contribute to a welfare fund aimed at providing social security for gig workers-a pioneering state-level action of this nature.
Ashok Varma, a partner and Inclusion Ecosystem Leader at Grant Thornton Bharat, noted that the Economic Survey’s focus on labor reforms could bolster gig workers’ positions. He remarked that the new labor codes are expected to facilitate the formalization of the labor market, offering much-needed recognition and protection for those in the gig economy.
Political momentum for formal acknowledgment has gathered pace, with lawmakers and civil society organizations advocating for minimum wage standards, social security provisions, and protections against arbitrary deactivation on digital platforms.
While e-commerce and logistics continue to dominate gig-related employment, the survey also highlighted growing involvement in manufacturing, retail, BFSI (Banking, Financial Services, and Insurance), healthcare, education, construction, hospitality, and IT services, indicating the increasing significance of platform-based labor in India’s non-farm economy.
The survey pointed out the Code on Social Security, 2020, which formally categorizes gig and platform workers, offering a legal framework for welfare funds and social security coverage. However, it cautioned that mere recognition won’t suffice without effective enforcement and implementation.
It underscored the necessity for enhanced access to provident fund coverage, health insurance, maternity benefits, and emergency savings mechanisms to ensure sustainable gig work. Furthermore, the survey called for increased algorithmic transparency, better grievance resolution frameworks, and more worker-friendly practices within platforms.
Referencing international trends, the survey noted that regions such as Spain, the European Union, and cities like New York and Seattle have moved towards stricter regulations, minimum wage guarantees, and protections against arbitrary worker termination. It emphasized that India must strike a balance between flexibility and protection to prevent deepening insecurity in this rapidly expanding workforce segment.
The survey advocates for a shift in perspective regarding gig work-a transition from a necessity to a choice. Policymakers are encouraged to concentrate on upskilling and financial inclusion, facilitating pathways for workers into higher-paying, more secure jobs.
As the gig economy solidifies its role in India’s growth narrative, the survey highlighted that its long-term viability will hinge not only on scale but also on the quality, security, and dignity of the jobs created.
Original Source: https://www.firstpost.com/business/economic-survey-2026-gig-workforce-races-ahead-jobs-growth-set-make-up-6-7-of-indias-workforce-by-2029-30-13973971.html
Category: India
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Publish Date: 2026-01-29 22:22:00
