India's Gig and Platform Economy

How millions of Indians now work through apps for delivery, ride-hailing and services, and the debate over their pay and protections.

Across Indian cities, millions of people work through digital platforms: delivering food and groceries, driving ride-hailing cars, providing home services and doing freelance work online. This is the gig and platform economy.

How big is it?

NITI Aayog estimated in 2022 that India had around 7.7 million gig workers in 2020 to 2021 and projected this could reach 23.5 million by 2029 to 2030. Platforms such as Swiggy, Zomato, Uber, Ola, Urban Company and quick-commerce apps employ large numbers of workers.

Attractions

Flexibility: workers can choose when and how much to work.
Low entry barriers: many jobs need only a smartphone and a vehicle.
Income opportunities for young people, migrants and those seeking extra earnings.

Concerns

Pay: earnings can be low and unpredictable after costs like fuel and vehicle maintenance.
No social protection: most gig workers are treated as independent partners, not employees, so they lack benefits like provident fund, health insurance and paid leave.
Algorithmic control: apps decide who gets orders, set pay rates and can deactivate workers, often with little explanation.
Safety: pressure to deliver quickly raises road safety risks.

Policy responses

The Code on Social Security, 2020, for the first time recognised gig and platform workers and allowed for social security schemes funded partly by contributions from platforms. The e-Shram portal registers unorganised workers. Some states, including Rajasthan and Karnataka, have passed laws creating welfare boards for platform workers. The 2025 Budget announced health coverage under PM-JAY for registered gig workers.

A delivery rider's day

A delivery rider in Bengaluru works ten hours, completing many orders. His earnings look reasonable on busy days, but after fuel, phone data and bike repairs, his net income is modest, and slow days bring much less. If he has an accident, he may have no paid leave. Recognising gig workers in law aims to give such workers basic protections.

Thinking gig work is just a side hustle

For many workers, gig work is their main or only source of income. Their pay and protections matter for millions of households.

Key takeaways

NITI Aayog estimated 7.7 million gig workers in India in 2020 to 2021, projected to reach 23.5 million by 2029 to 2030.
Gig work offers flexibility and low entry barriers.
Low, unpredictable pay, lack of protection and algorithmic control are concerns.
The 2020 Social Security Code and state laws have begun to extend protections.