NITI Aayog Predicts 23.5 Million Gig Workers by 2029-30

By IndraStra Global News Team

NITI Aayog Predicts 23.5 Million Gig Workers by 2029-30

According to a report published by the National Institution for Transforming India (NITI Aayog) on Monday, which was the first of its type, the number of people working in the gig economy in India is predicted to grow to 23.5 million by 2029-30, representing a near 200 percent increase from the current 7.7 million.


According to the report titled "India's Booming Gig and Platform Economy," freelance workers will make up 4.1 percent of India's total workforce by FY30, up from the current percentage of 1.5 percent. According to the report, gig work is growing in all industries. However, approximately 47 percent of the jobs require medium levels of competence, roughly 22 percent require high levels of skill, and about 31 percent require low levels of skill.


Workers who earn their living through means other than the formal employer-employee relationship are called gig workers. These workers can be roughly categorized as either platform-based or non-platform-based workers. For example, workers who do their jobs using online software applications or digital platforms, such as Zomato, Swiggy, and Ola aggregator platforms, are known as platform workers.


Workers not employed through a platform typically engage in conventional employment for a wage or on their account and work either part-time or full-time. 


The paper also discusses the industry's growing problems and the necessity to find solutions to those problems. The most significant of these issues are the lack of job security, the irregularity of wages, and the uncertain employment status of workers. In addition, the contractual relationship between the owner of the platform and the worker is not characterized as one of employment. As a result, workers on platforms are often referred to as "independent contractors." As a direct consequence, workers on platforms do not have access to a significant number of workplace rights and privileges.


The NITI Aayog also suggests expanding social security measures to gig workers and their families. These policies might include paid sick leave, insurance, and pension.


“The gig and platform sector has low-entry barriers and, hence, holds enormous potential for job creation in India. The sector offers better income opportunities to those previously engaged in similar non-platform jobs. It can, thus, work as a catalyst for occupational mobility,” it said.


However, industry participants stated that rather than a full report, it is time for action.


“It is indeed a commendable work from NITI Aayog to come out with a detailed report on the gig workers and economy. We need to bridge the gap between soliciting comments and actual implementation. We have to take concrete steps but are faltering in its execution. And we need to ask if this is helping the gig workers,” said Rituparna Chakraborty, co-founder and executive director, of Teamlease.


According to the paper, a more in-depth investigation is required to quantify the extent of the gig economy and define the characteristics of its workers.


“During official enumerations (PLFS, NSS, or otherwise), collect information to identify gig workers. This could include questions on the nature of a contract between worker and job creator, use of technology in work, etc.,” it said.


According to the National Association of Software Services Companies (NASSCOM), the COVID-19 epidemic has created adjustments in work, workforce, workplace, and work culture, inevitably establishing the next standard for the future of work.


“Today, gig modethe l of workforce is evolving beyond its use for pure situational augmentation to become a prominent capacity and capability development model that will emerge as a key component of the bended workforce model of the future. Although still in its nascent phases, as hybrid work models continue to evolve, favourable government policies to support India’s knowledge economy will further accelerate gig models leadinthe g to availability of a wider talent pool and job creation,” said a statement from NASSCOM.


The paper recommends expanding access to financing. Fintech and platform businesses can be utilized to supply workers with cash flow-based loans as opposed to collateral-based loans, thereby meeting the demands of those with limited credit history. Additionally, it stated that unsecured loans to first-time borrowers who participate in the platform economy may be regarded as priority sector lending.


It was pointed out that the "platformization" of work has resulted in the creation of a new category of labor known as "platform labor," which does not fall under the purview of the conventional divide between formal and informal labor.


The necessity for policies to evolve alongside platforms is another topic covered in the paper. "Platform corporations and governments need to keep in mind special features of workers in these industries when formulating policies," According to the paper, India wants a framework that strikes a balance between the flexibility afforded by platforms and the safeguarding of the social security of workers.


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IndraStra Global: NITI Aayog Predicts 23.5 Million Gig Workers by 2029-30
NITI Aayog Predicts 23.5 Million Gig Workers by 2029-30
By IndraStra Global News Team
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