Economic Survey Advocates for Policy Shift to Make Gig Work a Choice, Not a Necessity
The Economic Survey for 2025-26, tabled in Parliament, has emphasized the need for policies that reshape the gig economy to ensure it becomes a voluntary choice for workers rather than a forced option. This comes amid growing concerns over the financial, physical, and mental well-being of gig workers in India, particularly those employed by delivery platforms like Zomato, Blinkit, and Swiggy.
Addressing Challenges for Equitable Growth
While noting that the gig economy is booming and the growth of gig workers is outpacing overall employment, the Survey highlighted that addressing its challenges is crucial to ensuring long-term and equitable growth. It pointed out that platforms have become essential infrastructure for finding work, but this concentration of power raises issues related to fees, algorithms, and worker protections.
The Survey stated, "Taken together, the goal of gig-economy policy should be to reshape the terms so that workers exercise real choice rather than being pushed into gigs due to weak demand, skill mismatch, or the absence of a safety net."
Recent Debates and Worker Strikes
Over recent weeks, a heated debate has erupted regarding the conditions of workers on delivery platforms, with aggregators facing criticism for low pay and unrealistic delivery-time promises. In response, the Ministry of Labour and Employment intervened earlier this month, urging companies to abandon their '10-minute delivery' timelines.
This intervention followed a nationwide strike by thousands of delivery workers on New Year's Eve, who demanded better pay, safety protection, and social security. However, Deepinder Goyal, then CEO of Eternal (now Vice Chairman), argued on social media platform X that Zomato and Blinkit operated unaffected by the strikes, suggesting that critics misunderstand the gig economy's workings.
Moving Gig Workers Up the Chain
Citing a McKinsey categorisation of gig workers based on income reliance and preference, the Survey proposed that policy should aim to move workers from categories where gig work is a necessity to those where it is a choice. The categories include:
- Free agents: Those who rely on gig work as their primary income and prefer it.
- Casual earners: Individuals using gig work for supplementary income or skills.
- Reluctants: Workers who depend on gig work but prefer regular jobs.
- Financially strapped: Those taking gigs to make ends meet.
The Survey recommended policies to shift workers from the 'reluctants' and 'financially strapped' groups to 'free agents' and 'casual earners', making gig work a stable and reliable income source.
Ensuring Minimum Earnings and Algorithmic Transparency
The Survey highlighted that about 40% of gig workers report earnings less than Rs 15,000 per month, according to data from the Indian Staffing Federation. It criticized platform algorithms that control work allocation, monitor performance, and set wages, raising concerns about biases and burnout.
To address this, the Survey proposed:
- Setting minimum per-hour or per-task earnings, including waiting time.
- Ensuring algorithmic transparency to promote worker-friendly practices.
- Reducing the cost gap between regular and gig work by limiting incentives to avoid mandatory benefits.
Additionally, it suggested encouraging platforms and employers to co-invest in assets and training, and to help workers manage unstable incomes through access to low-cost emergency savings schemes, portable social security benefits, and financial-literacy programmes.
Looking Ahead
The Economic Survey underscored that the Labour Codes have formally recognised gig and platform workers, expanding social security and welfare funds. Moving forward, it stressed that reorganising the social contract to benefit workers more fairly will be key to fostering a sustainable gig economy in India.
