I'm sure you’ve ordered from Blinkit at least once in your life and noticed the delivery riders zipping through your neighbourhood, racing to meet those 10-minute delivery promises, or hailed an Uber or hopped on a Rapido bike when you needed a quick ride across the city. Perhaps you’re an entrepreneur and needed a quick logo designed for your brand so you hired a freelance graphic designer to do the work for you. It is worth noticing how the gig economy has quietly woven itself into our daily lives. Think about it— craving food? Zomato delivers it right to your doorstep. Need help with a quick home renovation? Urban Company sends a professional at your convenience. Without even realising it, we've embraced a new way of working and living where services and their providers are just a click away, all thanks to the gig economy and of course, the digital revolution.
This ‘Gig Economy’ is creating all the buzz lately and rightly so. Tech Target defines a ‘gig’ as a slang word for a job that lasts a specified period of time and a gig economy as a “free market system in which temporary positions are common and organisations hire independent workers for short-term commitments.”
India has witnessed significant growth in the gig economy in recent years. According to a Nasscom Aon report, India's gig workforce is projected to reach 23.5 million by 2030. Assocham reports that currently there are 15 million gig workers in India engaged in different sectors of the economy, the highest employed in trade and retail services.
The gig economy has existed in India ever since India opened its markets to free trade but the major event that put the gig economy under the spotlight was the COVID-19 pandemic. Like most industries, the pandemic hit gig work hard. However, e-commerce and food delivery platforms such as Amazon and Zomato became a lifeline for many unemployed individuals, offering them job opportunities during difficult times. Many people turned to freelancing during the pandemic when they lost their jobs and faced income hardships. Freelancing quickly became a popular choice of gig work as it provided the opportunity for remote work at a time when the entire country was in lockdown mode.
The growth of startup culture is another big reason for the rise of the gig economy in India. Hiring full-time employees can be expensive for startups. Fresh hires need to be trained and may not have much work experience but freelancers with both expertise and experience can be hired relatively easily. As a result, many companies choose to hire freelancers for specific projects based on client requirements, which helps them use resources more effectively and achieve better results.
Additionally, the digital revolution has given a massive push to the gig economy. With the spread of the internet and smartphone accessibility, looking for gig work has become easier. There is a plethora of online freelancing platforms like Fiverr, PeoplePerHour, UpWork etc. which allow people to advertise their skills, bid for work and get paid seamlessly and securely. From placing the order, working, delivering the service/product and receiving payment- all can be done online. This has made freelancing really popular, with many people taking up freelancing as a full-time career.
Another reason behind the soaring popularity of gig work is the flexibility it grants to the workers. By allowing workers to set their own schedules, it is reshaping the traditional 9-to-5 work culture and employment landscape in India. Many people now prefer gig work for its 24/7 flexibility over the rigid structure of full-time jobs, as it lets them choose which gigs to accept or decline and get paid per assignment completed.
Moreover, the appeal of gig work lies in its accessibility; it allows workers with limited skills or qualifications to enter the job market and earn an income. India has a substantial population of low and medium-skilled workers who often work odd jobs to make ends meet. In recent years, many of these individuals have turned to gig work, taking on roles such as cab drivers, delivery agents, and other positions that require minimal formal training. This has also contributed to the growth of the gig economy in India.
On the flip side, the gig economy has drawbacks too. The NITI Report 2022 categorises gig workers into two distinct subsets – platform workers and non-platform workers. Platform workers use online platforms to connect with customers, while non-platform workers include those in sectors such as construction, day jobs, and other temporary work. So on the one hand, freelancers can work from the comfort of their homes based on their desired ‘niche’ and be assured the worth of their work while others on the other hand have much less freedom of choice and face exploitation and delay of pay. There is also a lack of a proper legal framework for protecting gig workers in India. They are not covered under labour laws and do not have a social security net to fall back on during hardships.
Moreover, gig work has a seasonal nature to it. During the festive seasons, online e-commerce platforms run sales and there is increased consumer demand. Consequently, more orders are placed which leads to more deliveries and thus more demand for delivery agents by these e-commerce platforms. Every year demand for gig workers sees a spike during the festive season, however, in off-seasons, finding consistent work becomes more challenging. So, despite all the benefits gig work has to offer, it is largely unstable and seasonal.
In conclusion, the gig economy has undeniably transformed the way we work and live, job opportunities, and convenience for both workers and employers. As far as the future of the Gig Economy in India is concerned, it is expected to grow further. It has its fair share of advantages and disadvantages to offer but if its potential is utilised properly then growth in the gig economy can supplement the overall growth of the economy as well. It can help reduce the severity of the unemployment problem in India and increase the income level of households. With proper legal protection and regulatory measures, we can harness the growth and innovation potential of the gig economy and build a sustainable economic growth model that could significantly aid India in achieving its economic growth targets.
REFERENCES:
1. TechTarget
ABOUT THE AUTHOR
Snigdha Rudra, a 3rd-year BA Economics (Honours) student at Maitreyi College, has been an active member of Dravya, the college's Finance and Investment Cell, for the past year. Her involvement in Dravya has allowed her to develop a strong understanding of financial concepts and investment-focused initiatives. Snigdha's passion for economics and her contributions to the cell highlights her dedication to the world of finance and investment.
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