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India’s gig economy surges to 1.2 crore workers, but speed‑up pressure and low pay spark policy push

India’s gig economy surges to 1.2 crore workers, but speed‑up pressure and low pay spark policy push
The Rise of Gig Economy Warfare - The New York Times
The Rise of Gig Economy Warfare – The New York Times

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The gig sector in India now supports almost 1.2 crore workers, a figure set to double by 2030 and soon represent roughly 6.7 % of the country’s non‑agricultural labour force. Rapid growth has been driven by smartphone adoption and the spread of digital payments, with ecommerce platforms accounting for the largest share of jobs.

Key developments

  • A delivery‑workers strike in early 2026 exposed intense pressure to meet 10‑minute delivery targets, prompting government action to curb such promises.
  • The Economic Survey 2025‑26 highlighted that about 40 % of gig workers earn under Rs 15,000 a month, pointing to significant income volatility.
  • Platform algorithms now dictate work allocation, incentives and ratings, raising concerns about bias, burnout and the lack of transparency.
  • Agentic AI is increasingly shaping delivery workflows, pushing workers to improve efficiency while many still lack core digital skills such as UPI, order‑management tools and GPS navigation.

Why it matters

  • The sector’s expansion contributes over 2 % of India’s total workforce and is projected to make up 6.7 % of non‑agricultural employment by 2029‑30, underscoring its macro‑economic importance.
  • Low earnings and algorithmic control threaten worker wellbeing and financial inclusion, limiting access to credit and formal benefits.
  • Government and platform responses—such as calls for algorithmic transparency, minimum earnings standards, and reskilling programmes—could reshape the balance between flexibility and security for millions of workers.

What to watch next

  • Implementation of the Survey’s policy recommendations, especially minimum per‑hour or per‑task earnings and stricter competition rules for platforms.
  • How platforms will address the urgent reskilling needs identified, particularly AI‑bilingualism and digital‑finance literacy.
  • The evolution of agentic AI in gig work and whether further regulatory safeguards will be introduced to protect workers from efficiency‑driven exploitation. [[1, 2]]

Sources

  1. financialexpress.com
  2. economictimes.indiatimes.com

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