India's gig economy may add 90 million jobs, contribute 1.25% to GDP

Forum for Progressive Gig Workers' report says this market is expected to expand at 17% CAGR to reach a gross volume of $455 bn by year-end

The gig economy market is expected to grow at a compounded annual growth rate (CAGR) of 17 per cent to reach a gross volume of $455 billion by 2024, according to a white paper by the Forum for Progressive Gig Workers. Its contribution to India's gross domestic product (GDP) is estimated to be substantial, with the potential to add 1.25 per cent to GDP by 2030, and create 90 million jobs in the long term. The gig economy supports sectors such as e-commerce, transportation, and delivery services, among others.  

 

The white paper, launched at a webinar on Thursday on ‘Shaping the Future of Work: Empowering India’s Gig Economy’, underlines the positive impact of the gig economy, including alternate revenue streams for workers, scope for earnings for women, and avenues for workforce integration.  

 

“The report presents an initial effort to analyse the evolving dynamics between large companies and gig workers. It is a valuable starting point for understanding the challenges and opportunities within this sector,” said K Narasimhan, convenor, Forum for Progressive Gig Workers. The group plans to work with global organisations to release a formal report later that would provide deeper insights and recommendations for action.    

Going gig

 

 

17 per cent: CAGR at which the gig economy is expected grow

$455 bn: Expected growth volume by the end 2024

1.25 per cent: Industry could add in the GDP by 2030

The paper underlines the positive impact of the gig economy, including alternative revenue streams

   

Vinod Kumar, president, India SME Forum, said India's gig economy was poised for exponential growth, and is expected to employ 23.5 million gig workers and contribute 1.25 per cent to GDP by 2030. “With Tier-II and Tier-III cities emerging as growth hubs, and platforms driving welfare initiatives, the future of gig work lies in leveraging AI, predictive analytics, and digital innovation to create sustainable, inclusive opportunities,” he said.  

 

Given that such workers often fall in the grey zone between organised and unorganised labour, affecting benefits and resources, platform companies are increasingly prioritising better working conditions for gig workers, from providing durable raincoats during monsoons to establishing resting areas and access to water during extreme weather, said Shriram Subramanian, founder, InGovern Research Services.  

 

“Companies like Amazon, Walmart’s Flipkart, Zomato, and Swiggy are actively implementing measures to ensure the well-being of their workforce, reflecting a commitment to creating safer and more supportive environments for gig workers,” he said. However, he added that activism by organisations such as Amazon Indian Workers Association or the Gig and Platform Services Workers Union (GIPSWU), which he alleged are driven by self-interest, risk undermining genuine progress being made, and potentially harming the workers they claim to represent.  

 

Another panelist, Nirupama Soundararajan, founder, Policy Consensus Centre, also cautioned against equating full-time and gig workers. “While social benefits for gig workers are essential, it’s crucial to maintain a distinction between full-time employment and gig work. Equalising (sic) the two could disrupt the labour market, diminishing the appeal of full-time roles and impacting productivity and economic stability," she warned. “Additionally, any framework for gig worker welfare must balance fairness with feasibility for companies.” She added that overburdening employers risks stifling the very opportunities and flexibility that the gig economy provides.  

 

The panelists concurred that the gig economy is set to play a crucial role in India's future workforce and economic growth and will be instrumental in driving job creation, reducing income disparities, and promoting innovation across sectors. However, they said it is imperative that companies in this area adopt industry-best practices and flexible, standardised guidelines that will be critical to enhancing efficiency, supporting gig workers, and contributing to the country's economic growth.