From Flexibility to Security: The Transformation of India’s Gig Economy
Over the past decade, India’s gig economy has emerged as one of the most visible shifts in the way people work, moving from a niche alternative to a major feature of the labour market. In 2020 – 21, an estimated 7.7 million workers were engaged in gig and platform work, a number projected to grow to 23.5 million by 2029 – 30 as digital adoption deepens and demand for flexible talent rises. What began as a supplemental income option has today become a critical pillar of employment across cities, towns, and semi-urban regions, supporting livelihoods from delivery partners and ride-hailing drivers to freelance designers, tutors, healthcare workers, and technology professionals.
As India advances on its growth journey, the conversation around the gig economy is evolving. Early discussions focused largely on flexibility and income generation. Today, the emphasis is increasingly shifting towards long-term security, dignity of work, and social protection. This transition reflects a deeper understanding of the changing nature of employment and signals an important phase in India’s labour reforms.
The rise of flexible work in India has been enabled by rapid digitalisation. With over 750 million smartphone users and more than 850 million internet subscribers, India has built the infrastructure backbone necessary for large-scale platform work. For workers, gig roles offer flexibility in hours and location, allowing them to balance employment with education, caregiving, or other responsibilities. For businesses, platforms provide access to vast and diverse talent pools without the constraints of traditional employment structures.
This model has proved especially attractive to young workers, women re-entering the workforce, and individuals seeking supplemental income. NITI Aayog estimates that nearly 47% of India’s gig workforce is concentrated in medium-skilled roles, while around 22% are in high-skilled occupations, underscoring how gig work now spans far beyond low-skill services. During periods of economic disruption, including the COVID-19 pandemic, platform and self-employment also acted as a shock absorber, offering alternative earning opportunities when formal jobs were affected.
Yet, beneath this flexibility lie structural challenges. Most gig workers operate outside formal employment frameworks, resulting in limited access to health insurance, retirement benefits, paid leave, and income protection. The International Labour Organization estimates that over 90% of India’s workforce is in informal employment, a category that includes the majority of gig workers. Earnings volatility, algorithm-driven work allocation, and dependence on customer ratings further contribute to income uncertainty.
From what I have seen over the years, these gaps become most visible during moments of stress, health crises, economic slowdowns, or sudden shifts in demand. Flexibility alone is no longer enough to sustain long-term livelihoods. The next phase of growth must move from informal participation to structured inclusion.
India has begun taking important steps in this direction. The Code on Social Security, 2020 formally recognises gig and platform workers as a distinct category and provides for the creation of social security schemes covering insurance, health, and old-age protection. Complementing this, the e-Shram portal has registered over 300 million unorganised and gig workers, enabling better targeting of welfare schemes. Several states have also launched welfare boards and insurance programs for platform workers.
These initiatives reflect a growing consensus that gig workers are not peripheral contributors, but essential participants in India’s economic ecosystem. There is also increasing emphasis on shared responsibility, with proposals encouraging platforms to contribute to social security funds alongside government support.
Alongside policy efforts, digital platforms and aggregators play a critical role in shaping the future of gig work. Many are beginning to invest in worker well-being through health coverage, safety initiatives, onboarding and orientation support, and access to financial products such as micro-credit and savings tools. Structured onboarding at scale and early-stage enablement can significantly improve time-to-productivity, service quality, and worker confidence.
Skill development is emerging as another strategic priority. By enabling continuous learning and upskilling, platforms can help workers improve earning potential and transition into higher-value roles, while simultaneously strengthening workforce quality.
Technology, which enabled the rise of the gig economy, can also enable its next evolution. India’s digital public infrastructure including Aadhaar, Jan Dhan accounts, and mobile connectivity, makes it possible to deliver welfare benefits directly to workers at scale. Data-driven insights can help policymakers design targeted interventions based on income patterns, sectoral needs, and regional variations.
Equally important is the creation of systematic listening and feedback mechanisms that allow worker voices to be heard continuously, not only during crises. Consistent listening helps surface emerging risks early, improves policy design, and strengthens trust between workers, platforms, and institutions.
Another encouraging development is the gradual emergence of worker collectives and associations. These groups provide platforms for dialogue, grievance redressal, and awareness-building around rights and benefits. Constructive engagement between worker representatives, platforms, and government bodies can lead to balanced solutions that protect worker interests while preserving flexibility.
The transformation of India’s gig economy is not about replacing flexibility with rigidity. It is about building a balanced model where choice coexists with security. Workers should be able to decide how they work without sacrificing access to basic protections and dignity.
India’s path forward sits at the intersection of Talent, Technology, and Transformation, investing in people’s capabilities, leveraging digital innovation, and reimagining labour frameworks for a new era of work.
A secure gig economy can contribute significantly to India’s employment goals, entrepreneurial dynamism, and economic resilience. As India aspires to become a global economic leader, the way it supports its workforce will shape the sustainability of that ambition. The shift from flexibility to security reflects a maturing labour market, one that values both opportunity and protection. By combining progressive policy frameworks, responsible platform practices, technological innovation, and worker participation, India can build a gig economy that is resilient, fair, and future-ready.
Written by : Anish Singh, Co-founder of All Things People
