The year 2024 saw India’s labour landscape at a pivotal moment, grappling with legacy challenges while embracing opportunities presented by the rapidly expanding gig economy. Platforms such as ride-hailing apps, freelance portals and delivery services created new avenues for employment, while traditional labour issues — like informal work, skill gaps and social security deficits —persisted.
The gig economy demonstrated significant growth, driven by technological advancements and shifting labour preferences. The gig workforce is expected to grow to 23.5 million workers by 2030, forming 4.1 per cent of the total workforce, up from 1.3 per cent in 2020, with an annual growth rate of 12–14 per cent, said Nikhil Kolur, Partner, Human Capital Consulting, Deloitte India.
He highlighted a shift towards specialised roles, stating that “demand for white-collar gig workers increased seven times in Q1 2023 alone, reflecting the growing appetite for skilled professionals.”
Challenges
Despite strides, India’s workforce remained tethered to structural issues. A significant portion continued to work in the informal sector, lacking access to statutory protections such as pensions, insurance and paid leave.
Additionally, automation and artificial intelligence widened the skills gap, intensifying job insecurity. Low wages, underemployment and gender disparities further underscored the need for inclusive growth strategies.
Growth of the Gig Economy
Simultaneously, gig platforms covering services such as food delivery, ride-hailing, IT freelancing, and home maintenance have emerged key employment drivers. The allure of flexible hours and earning opportunities attracted both skilled and semi-skilled talent. However, these workers often faced uncertainty, with no guaranteed minimum wages or structured benefits.
Pooja Ramchandani, Partner, Shardul Amarchand Mangaldas & Co., “The gig economy in India in 2024 is characterised by diversification and technological integration. However, a balance is needed between flexibility and formal recognition to ensure worker welfare, including social security, health and safety measures.”
Government initiatives
The government has responded by accelerating registrations under the e-Shram portal, designed to map gig workers’ skills and socio-economic conditions. This initiative lays the groundwork for integrating them into broader social security frameworks. Simultaneously, progress on the Code on Social Security, 2020 gained momentum, with draft rules outlining aggregator contributions towards provident funds, insurance and pensions. Skill development programmes tailored to gig work, such as digital literacy and financial management, were expanded to enhance employability.
Debjani Aich, Partner at IndusLaw, emphasised the urgency of implementation. “The government will need to enforce the Code of Wages and the Code on Social Security. Though in abeyance for years, indications point to their rollout by 2025, which will be critical for gig worker legislation.”
Addressing the social security gap for gig workers remained a focal point in 2024. While traditional employees benefit from provident funds, gratuity, and insurance, gig workers historically lacked such protections. Recognising this, both governments and platforms-initiated pilot programmes. Certain States introduced accident insurance schemes and improved access to microcredit, while select aggregators began contributing to worker welfare funds under government directives.
These early-stage measures signal a shift towards reducing vulnerabilities for gig workers, although broader implementation remains essential.
The Road Ahead
As India transitions from 2024 to 2025, it faces the dual challenge of addressing traditional labour issues while building a sustainable framework for gig workers. The task lies in ensuring that policies not only recognise gig work but also guarantee worker protections without compromising the flexibility that defines the sector.
With evolving regulations, active government participation and industry collaboration, India can create a labour ecosystem that balances innovation with fairness. As Ramchandani aptly put it, “Striking the right balance will ensure that gig work remains both a viable opportunity for workers and a sustainable driver of economic growth.”
By securing the rights of gig workers and addressing long-standing labour gaps, India has the potential to set a global example —redefining work for a future powered by flexibility, technology, and inclusion.