On 28th November 2024, Union Minister of State (MoS) Sushri Shobha Karandlaje, Ministry of Labour & Employment (MoL&E) has informed the Rajya Sabha (the Upper House of Parliament) that as per the National Institution for Transforming India (NITI Aayog)’s report titled “India’s Booming Gig and Platform Economy: Perspectives and Recommendations of the Future Work” published in June 2022, the number of gig and platform workers is expected to increase to 23.5 million by 2029-30,
- The gig workers will constitute 6.7% of the non-agricultural workforce or 4.1% of the total livelihood in India by 2029-30.
Key Findings:
i. As per the estimation of the report, around 7 million people(including women) were engaged in the gig economy in 2020-21, which constituted 2.6% of the non-agricultural workforce or 1.5% of the total workforce in India.
ii.In 2022, about 47% of the gig work was in medium skilled jobs, about 22% in high skilled, and about 31% in low skilled jobs.
iii.The report had classified gig workers in India in terms of industrial sectors in FY20 like: retail trade (26.6 lakh gig workers), transportation (about 13 lakh), manufacturing sector (6.2 lakh), finance and insurance activities (6.3 lakh).
Significance of India’s Gig Economy:
i.It is estimated that India’s gig economy will grow at the rate of 17%, with gross volume expected to reach USD 455 billion in 2024.
ii.Also, the gig sector has the potential to create 90 million jobs and contribute 1.25% to India’s Gross Domestic Product (GDP) by 2030.
Points to Note:
i.The Government of India (GoI) for the 1st time has defined “gig workers” and “platform workers” and provisions related to them in the Code on Social Security, 2020 which has been enacted by the Parliament.
- As per the Act, gig worker is a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationships.
- The Act defines platform worker as a person who works outside of the traditional employer-employee relationships and access organisations or individuals through an online platform and provide service for payment.
ii.The Code on Social Security, 2020 includes certain measures which aim to ensure social security of the gig workers and platform workers like: matters related to life and disability cover, accident insurance cover, health and maternity benefits, old age protection, among others.
About National Institution for Transforming India (NITI Aayog):
Chief Executive Officer (CEO) – B.V.R. Subrahmanyam
Headquarters- New Delhi, Delhi
Established in- 2015
