India’s Gig Economy Set to Create 90 Million Jobs, Contribute 1.25% to GDP by 2030

The gig economy is set to take India’s growth by storm, having been estimated to provide a 90 million job prospect and 1.25% contribution to the nation’s GDP in 2030. The market for this sector, as of now, is said to reach a gross volume of $455 billion at the end of 2024 with an expected compounded annual growth rate of 17%, having been recently revealed in the white paper from the Forum for Progressive Gig Workers. Growth in these sectors-which include e-commerce, transportation, and delivery-is fueled by a huge number of gig workers. 

The report focuses on the possibilities of the gig economy: creating alternative sources of income, increasing women’s earning opportunities, and integrating varied workforces. K Narasimhan, a convener of the Forum for Progressive Gig Workers said that the paper provides an early analysis of the changing contours of big companies and the gig workers. He said the group would join hands with international bodies to come up with a more comprehensive report with deeper insights and workable recommendations in the near future. 

Vinod Kumar, president of the India SME Forum, said that the gig economy in India is slated to engage 23.5 million workers by 2030. He pointed to Tier-II and Tier-III cities as emerging hubs of growth, driven by digital innovation, AI, and predictive analytics. These technological advancements are likely to create sustainable and inclusive opportunities for gig workers, thereby further expanding the sector. 

The gig economy also has challenges, especially with the status of gig workers. They usually find themselves in the grey area between formal and informal labor, which means that access to benefits and resources is a challenge, and therefore companies need to improve working conditions. Shriram Subramanian, of InGovern Research Services, said major platforms such as Amazon, Zomato, and Swiggy have initiated efforts to improve the welfare of workers, from providing raincoats during monsoon to rest areas and even water during extreme weather conditions. 

While experts admitted that the gig economy was bringing in many benefits, they also warned against equating gig work and full-time employment. Nirupama Soundararajan, founder of the Policy Consensus Centre, said that this would be disruptive to the labor market and undermine productivity if equated. She said that the welfare framework for gig workers has to balance fairness for the workers with feasibility for the employers, keeping the sector flexible and innovative but supporting growth in the economy.