India’s gig economy is set for transformative growth, potentially creating 90 million jobs and contributing 1.25% to the nation’s GDP, according to a whitepaper by the Forum for Progressive Gig Workers. The gig market, fueled by large multinational corporations, is projected to grow at a compound annual growth rate (CAGR) of 17%, reaching a gross transaction volume of USD 455 billion by 2024.
The report highlights the gig economy’s substantial role in sectors such as e-commerce, transportation, and delivery services, emphasizing its ability to drive employment and economic contributions across the country.
Vinod Kumar, President of the India SME Forum, stated, “India’s gig economy, powered by digital platforms and flexible work models, is on an exponential growth trajectory. By 2030, it is expected to employ 23.5 million gig workers and add 1.25% to the GDP. Tier 2 and 3 cities are emerging as hotspots, with platforms leveraging AI and predictive analytics to foster sustainable, inclusive opportunities.”
Shriram Subramanian, Founder of InGovern Research Services, underscored how platform companies are improving gig workers’ conditions by providing essential amenities such as durable raincoats, resting areas, and water access during extreme weather. He also cautioned against activism by organizations like the Amazon Indian Workers Association, which he claimed could hinder genuine progress made by companies like Amazon, Flipkart, Zomato, and Swiggy in creating safer environments for gig workers.
Nirupama Soundararajan, Founder of the Policy Consensus Centre, emphasised the importance of maintaining a clear distinction between full-time employment and gig work. “Overburdening companies with social benefit mandates could disrupt the flexibility and opportunities the gig economy offers, potentially impacting productivity and economic stability,” she stated.
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The panel collectively agreed that the gig economy will be instrumental in shaping India’s workforce, reducing income disparities, and driving innovation. They stressed the need for industry best practices, standardized guidelines, and balanced policies to enhance efficiency and ensure the welfare of gig workers while sustaining economic growth.