There was a time when a “salaryman” meant Oxford shoes, stiff ties, a briefcase in hand, and a paycheck on the first of every month – essentially an “officeworker”. Those days feel like a distant memory now. The gig economy has arrived, shattering those old stereotypes and rewriting the rules of work. It’s a world of short-period, flexible jobs where people take on “gigs” instead of signing long-term contracts. From ridesharing with Uber and Ola to food delivery on Swiggy or freelance designing on Upwork, these jobs are often made possible by digital platforms.
As an economist, I find the gig economy fascinating, especially from the perspective of market efficiency and social welfare. Technology has made it possible to match workers with tasks dynamically, minimizing the time and cost of job searches. It’s like watching an orchestra of resources being allocated in real-time such that services flow to exactly where they’re needed. This flexibility has brought a level of economic agility that traditional systems could only dream of.
But not everything about this “gig” is perfect. Just last month, I ordered samosas from a new neighborhood deli on Swiggy. While the delivery executive unpacked my order, my father struck up a conversation with him. What started as a friendly chit-chat soon took a sobering turn. The delivery guy shared how hard it’s been to make ends meet. With fuel prices climbing and delivery incentives shrinking, his earnings—despite 10–12-hour workdays—were barely enough to cover his expenses.
A few days later, I was chatting with a friend who works as a freelance graphic designer. She loves the creative freedom and flexibility her gig role offers, especially after burning out at her last full-time job. But as our conversation went on, her excitement dimmed. She admitted she’s anxious about the future—no health insurance, no retirement plan, no safety net. It’s like walking a tightrope with no harness.
These two stories from such different worlds made me wonder: is the gig economy sustainable for the people who keep it running?
The numbers are hard to ignore. According to NITI Aayog , India’s gig workforce could grow to 23.5 million by 2029–30. That’s a massive shift in how work gets done, but it also raises urgent questions about job security, fair wages, and social safety nets.
Right now, only about 10% of gig workers in India have access to any form of social security . Think about that; just one in ten workers has something as basic as medical insurance or a pension. The Code on Social Security, introduced in 2020, was a step in the right direction, promising benefits for gig workers. But implementation has been slow, and coverage remains limited.
Fair wages are another big concern. Gig workers often earn between ₹15,000 and ₹25,000 per month, depending on the sector. That’s significantly lower than the ₹32,000 average monthly salary for full-time employees in urban areas. Establishing minimum wage guidelines and linking them to inflation could go a long way in addressing this disparity.
Then there’s the question of skills. Nearly half of India’s gig workers are in medium-skilled jobs, according to Statista . Programs like the Skill India Mission could partner with platforms like Swiggy or Uber to provide targeted training. Helping workers transition to higher-skilled roles could increase their earning potential and give them more stability.
Finally, we need better accountability for gig platforms. Initiatives like Fairwork India Ratings, which assess how platforms treat their workers, should be incentivized and supported. Transparency and accountability can create a fairer playing field for everyone involved.
If these measures are implemented thoughtfully, we can build a labor market that’s equitable and secure for gig workers while driving economic growth. With the gig economy expected to have contributed $455 billion to India’s GDP by 2024 , its sustainability is essential for the country’s future.
Ms. Janani Sri S G
Assistant Professor I, School of Economics, KCLAS