Majority of India’s gig workers remain out of the government’s reach

The rise of the gig economy (a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs) presents a major shift in India's employment landscape. While it offers flexibility and job creation, it often lacks traditional employer-employee relationships, leading to a deficit in social security (measures providing protection against various life risks). The article highlights the discrepancy between the estimated gig workforce (over 1 crore as per NITI Aayog) and actual registrations on the e-Shram portal (under 10 lakh). This gap underscores the difficulty in formalizing the unorganized sector. UPSC often focuses on the challenges of informal employment; understanding the definition of a gig worker under the Code on Social Security, 2020 and the mechanisms proposed for their welfare, such as a dedicated social security fund, is crucial for GS Paper 3 (Employment and Inclusive Growth).

The e-Shram portal, conceptualized as an Aadhaar-seeded National Database of Unorganised Workers (NDUW), is a significant governance initiative aimed at tracking and delivering targeted benefits to the unorganized workforce. However, the low registration numbers among gig workers reveal limitations in the current outreach and registration mechanisms. The article points out that making registration a prerequisite for benefits, while logical for targeting, might exclude those unaware of or unable to access the portal. Furthermore, the lack of uniform registration across states, with highly urbanized states like Tamil Nadu and Kerala lagging, points to uneven implementation and potentially a digital divide. For UPSC, analyzing the effectiveness of such digital governance platforms in ensuring last-mile delivery of welfare schemes is a key aspect of GS Paper 2 (Governance and Social Justice).

The gig economy, while providing income opportunities, often leaves workers vulnerable due to the lack of job security, paid leave, and comprehensive health coverage. The promise of healthcare coverage in the 2025-26 Budget is a positive step toward mitigating this vulnerability. However, the article highlights that the majority of gig workers are concentrated in the food industry, transportation, and domestic work, sectors often characterized by long hours and physical exertion. The failure of the Periodic Labour Force Survey (PLFS) to capture gig workers as a distinct category hampers the formulation of targeted social policies. Understanding the socio-economic profile of gig workers and the need for inclusive labor policies that protect their rights without stifling the growth of the platform economy is vital for GS Paper 1 and 2 (Social Issues and Vulnerable Sections).