What is the Future of Gig Economy in India?

THE Internet is a very powerful business platform. Many people are able to generate good income through networks, in today’s digital world the definition of employment and nature of work is also changing rapidly. A new global economy is fast emerging, which is being named as the ‘Gig Economy’. The Gig Economy is a free market system in which temporary work opportunities generally exist and various organizations hire freelance workers for short-term engagements. with Let’s contract.

By 2024, the gig sector is expected to account for about 4 per cent of India’s total workforce, according to a report released this month by financial services platform StrideOne. It is expected to provide employment to around 23.5 million workers by 2024 – a three-fold increase from just 8 million – or 1.5 per cent of the workforce – in 2020-21.

This type of work has grown in popularity in recent years because it is more productive for personnel.It provides flexibility and freedom and can be a cost-effective solution for businesses. Gig workers are the ubiquitous new workforce. They are the people who get us the food we ordered online, take us from home to the office or wherever are, and usually provide many services that go unnoticed.

There are two fundamental factors behind the growth of the gig economy in India. Firstly, the technological development in the country has contributed to its growth. Technological changes have made it much easier to contract and make it possible for freelancers to find work. Another factor is that due to the stringent labor laws in India, many companies prefer to have a contract labor force. Many changes have been made in India both in factors like digitization of the economy and reforms on the labor front.

The Indian government needs to pay more attention to the development of gig economy. Because currently, the Indian economy is facing unemployment due to lack of inclusive growth. The creation of jobs in the gig economy will boost employment in the Indian economy. In addition, Indians are facing the problem of unemployment stemming from agriculture. Gig economy will be able to provide gainful employment to such rural youth. This is also likely to improve competition. Short term depending on the volume of work, hiring freelance workers helps companies rationalize their work force and reduce costs. This improves the competition and skills of the companies.

Not only this, it will also give freedom to the workers which can prove to be beneficial for them. The gig economy gives workers the freedom to work at their convenience, with no fixed hours. They can switch jobs as per their interest areas. When labor companiesIf they live in bondage with them, they do not go anywhere else much. There is an opportunity for women in this. The requirement of working fixed hours per day deters women from taking up formal sector jobs. The gig economy provides women with workplace jobs that offer flexibility in terms of working hours.

Concerns also exist about the lack of job security and benefits for gig economy workers. It is estimated that the gig economy will further expand in India in the future and hence itIt should be supported by government rules and policies to protect the rights of workers and ensure fair treatment towards them. Many gig workers in India are not covered by labor codes and do not have access to benefits such as health insurance and retirement plans.

A survey by Catalyst Fund and KarmaLife found that 88 percent of gig economy workers ran out of money before the end of the month. Most of them attributed this to rising household and fuel expenses.R ordained. 90 per cent of the workers surveyed also said that they would like to take a personal loan to meet their family expenses, but cannot do so due to the nature of their job. The survey also pointed out that around 40 per cent of gig Economy workers had no insurance, and only 24 per cent of them had employer-provided insurance cover. The remaining 36 per cent workers bought insurance by paying the premium themselves.

According to a research by Flourish Ventures, before the pandemic,Most gig economy workers earned above Rs 25,000, while after the pandemic, nine out of ten workers were earning less than Rs 15,000. There are many possible reasons for this high income fluctuation. Gig workers in India are often paid less than traditional workers and lack the same legal protections as them.

The gig economy is heavily dependent on technology and internet access, which again creates a barrier for those who do not have access to these resources.This further increases the inequality. Gig workers may lack the same social connections and support systems as traditional employees, as they often work independently and lack a physical workplace.

The government is considering providing affordable medical care at subsidized rates to employees working in the gig economy in Employees’ State Insurance Corporation (ESIC) hospitals and dispensaries. This can provide relief to the companies associated with the gig economy as they have to pay for their employees.Social Security will not have to bear the cost. The Social Security Code Bill, 2019 was introduced by the government in the Lok Sabha in the last session of Parliament. The bill proposes to provide social security cover for the first time in India to employees working in the gig economy. The bill states that the government will introduce a scheme to bring gig workers under ESIC.

The Government of India should establish clear regulations and policies for the gig economy to ensure the safety of gig workers and companiesTo be held accountable. The government should invest in education and training programs to improve the skills of gig workers and increase their income-earning potential.

Views expressed in the article are the author’s own and do not necessarily represent the editorial stance of Kashmir Observer