NITI Aayog Launches Report on India’s Gig and Platform Economy

What is the News?

NITI Aayog has launched a report titled ‘India’s Booming Gig and Platform Economy’. 

What is India’s Booming Gig and Platform Economy Report?

Released by: Niti Aayog

Purpose: The report is a first-of-its-kind study that presents comprehensive perspectives and recommendations on the gig–platform economy in India.

What are the key highlights from the report?

Definition: The report defines a gig worker as “someone who engages in income-earning activities outside of a traditional employer-employee relationship, as well as in the informal sector”. 

Classification of Gig Workers: Gig workers can be broadly classified into the platform and non-platform workers. Platform workers are those whose work is based on online software apps or digital platforms while non-platform gig workers are generally casual wage workers, working part-time or full-time.

Gig Workers in India: In 2020–21, 77 lakh (7.7 million) workers were engaged in the gig economy.

They constituted 2.6% of the non-agricultural workforce or 1.5% of the total workforce in India. 

The gig workforce is expected to expand to 2.35 crore (23.5 million) workers by 2029–30. Gig workers are expected to form 6.7% of the non-agricultural workforce or 4.1% of the total livelihood in India by 2029–30. 

At present, about 47% of the gig work is in medium-skilled jobs, about 22% in high skilled and about 31% in low-skilled jobs. The trend shows the concentration of workers in medium skills is gradually declining and that of the low skilled and high skilled is increasing.

What are the recommendations of the report?

Undertake a separate enumeration exercise to estimate the size of the gig economy and identify the characteristic features of gig workers.

During official enumerations (PLFS, NSS or otherwise), collect information to identify gig workers. This could include questions on the nature of the contract between worker and job creator, use of technology in work etc. 

Introduce a ‘Platform India initiative’ on the lines of the ‘Startup India initiative’, built on the pillars of accelerating platformization by simplification and handholding, funding support and incentives, skill development, and social financial inclusion.

Self-employed individuals engaged in the business of selling regional and rural cuisine, and street food may also be linked to platforms so that they can sell their products to wider markets in towns and cities.

Other recommendations include gender sensitisation and accessibility awareness programmes for workers and their families, and extending social security for gig and platform workers in India.

Source: The post is based on the article “NITI Aayog Launches Report on India’s Gig and Platform Economy” published in PIB on 27th June 2022