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Gig Economy in India 2022: Challenges and Future Prospects.



  Oct 06, 2023

NITI Aayog Report on India's Gig and Platform Economy (2022)



The NITI Aayog's report on India's Gig and Platform Economy for 2022 estimated that, during the fiscal year 2020-2021,
77 lakh workers were engaged in the gig economy.
This workforce constituted 2.6% of the non-agricultural workforce or 1.5% of the total workforce in India.

Future Projections:

The report anticipates significant growth in the gig workforce, with projections indicating an expansion to 2.35 crore workers by 2029-30.
They are expected to comprise 6.7% of the non-agricultural workforce or 4.1% of the total livelihood in India by 2029-30.

Report Recommendations:

The report provides suggestions for the transformation of the gig economy through platform-led skilling initiatives. It emphasizes enhancing social inclusion through gender sensitization and accessibility programs for workers and their families.
Additionally, it highlights extending social security measures as envisaged in the Code on Social Security, 2020.

Skill Levels:

At present, approximately 47% of gig workers are in medium-skilled jobs, 22% in high-skilled, and 31% in low-skilled jobs.
The gig economy is seen as a potential contributor to India's goal of becoming a $5 trillion economy by 2025.

Challenges and Regulation:

However, the gig economy poses regulatory challenges, particularly regarding social security for this emerging unorganized workforce.
The absence of a regulatory framework for gig workers and aggregators, as well as the lack of an effective dispute resolution mechanism, has been a concern.

Rajasthan's Initiative:

The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023, is the first state-level effort to provide social security for platform-based gig workers.
It establishes a regulatory framework with a tripartite Welfare Board, including representatives from the State Government, gig workers, and aggregators.

Key Definitions:

Gig Worker: A person engaged in work arrangements outside of traditional employer-employee relationships, typically based on contracts with specified payment terms.

Aggregator: A digital intermediary connecting buyers or users with sellers or service providers in an online transaction-based work arrangement.

Platform: An online arrangement for goods and services involving providers and recipients and specifying payment rates.

Rajasthan's Provisions:

The Act mandates the registration of platform-based gig workers and aggregators, creating a welfare fund and imposing a welfare fee on aggregators. Gig workers are entitled to registration, social security schemes, and grievance redressal.

National Framework:

The Code on Social Security, 2020, at the national level, addresses gig workers' social security needs but has not yet come into force.
It envisions suitable social security schemes for gig workers and platform workers.

Challenges Persist:

>Despite these initiatives, gig workers still face challenges related to social security and protection compared to traditional employees.
They often lack benefits like Provident Fund, Pension, ESI, Gratuity, and leave.

Conclusion:

The gig economy, a significant contributor to India's economic growth and employment, necessitates comprehensive social security schemes and fair working conditions.
Both the government and aggregators need to ensure the well-being of gig workers in this evolving landscape of unorganized labor.


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