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The gig economy market is expected to grow at a compound annual growth rate (CAGR) of 17 per cent to reach a gross volume of $455 billion by the end of 2024, according to a white paper by The Forum for Progressive Gig Workers.
Estimates suggest the gig economy has the potential to create 90 million jobs and add 1.25 per cent to India’s GDP (gross domestic product) over time.
Gig economy supports sectors such as e-commerce, transportation, and delivery services, among others, the white paper says.
The white paper was launched on Thursday at a webinar on “Shaping the Future of Work: Empowering India’s Gig Economy”.
The paper further underlines the positive impact of the gig economy, including alternative revenue streams for workers, scope for earnings for women, and avenues of integration into the workforce.
K Narasimhan, convenor of the Forum, said: “The report presents an initial effort to analyse 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 organisations to release a formal report that provides deeper insights and actionable recommendations.”
Vinod Kumar, president, India SME Forum, said: “India's gig economy, fuelled by digital platforms and characterised by flexible, short-term work, is poised for exponential growth — projected to employ 23.5 million gig workers and contribute 1.25 per cent 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.”
Shriram Subramanian, founder, InGovern Research Services, said platform companies are increasingly prioritising 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, 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,” said Subramanian.
Another panellist, 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.
"Equalising the two could disrupt the labour 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.”
Panellists concurred that the gig economy is set to play a crucial role in India’s future workforce and economic growth, and it will be instrumental in driving job creation, reducing income disparities, and promoting innovation across sectors.
However, they said it is imperative to adopt industry best practices, and flexible and standardised guidelines that will be critical to enhance efficiency, support gig workers, and contribute to the country’s growth.
