Unleashing India's Gig Revolution: Navigating Challenges, Upskilling Initiatives, and Future Prospects

 Exploring Gigonomics 2.0

Gigonomics 2.0 is a new way of working that has emerged in recent years. It is characterized by a series of short-term, independent contracts, also known as “gigs”. This means that instead of having a traditional job, people work on a project-by-project basis, often for multiple clients at the same time. The term is often used in the context of the gig economy, which is a labor market characterized by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs.

Gigonomics 2.0 is an evolution of the gig economy, which has been growing rapidly in India and around the world. According to a report by ASSOCHAM, India’s gig sector is expected to increase to US$455 billion at a CAGR of 17% by 2024 and has the potential to expand at least 2x the pre-pandemic estimates. According to a NITI Aayog report, by 2029-30, India will have 23.5 million gig workers, a growth of 200 percent from today’s numbers. 

Another report by Boston Consulting Group (BCG) and Michael and Susan Dell Foundation forecasted that India’s gig economy could triple over the next three to four years to 24 million jobs in the non-farm sector—from the current 8 million jobs. The report also highlighted that gig jobs could increase to 90 million in 8-10 years.

Harnessing India's Demographic Dividend

The potential of India’s workforce cannot be overstated. We are the most populous country in the world. And with the world’s second-largest working-age population, our workforce will continue to grow in size until 2049. With 960 million potential workers, India’s demographic dividend is about to be realized.

However, the road to success is paved with challenges.

Challenges:

Gig workers in India face several challenges, including a lack of basic employment rights such as minimum wages, overtime pay, medical leave, and a statutorily bound resolution of employer-employee disputes. They also display characteristics of both employees and independent contractors, which means they fall outside the ambit of statutory benefits under the Minimum Wages Act 1948, EPF Act 1952, and the Payment of Bonus Act 196 (for employees) and the Contract Labour (Regulation and Abolition) Act 1970 (for contract laborers).

Other challenges faced by gig workers include shortfalls in salary, lack of insurance, difficulties accessing credit, and income fluctuations. 

Upskilling: Enabling excellence, unlocking potential 

Upskilling opens doors to new opportunities and creates a resilient and future-ready workforce.

Since its inception, Urban Company has invested ₹250 crore in all and ₹72 crore just last year alone to skill over 50,000 service partners through 200+ in-person training centers across India, in partnership with the National Skill Development Council of India. This has helped boost their average monthly earnings to four times than their offline counterparts.

Such investments in skill development also have the power to shift generational trajectories and to elevate the status and stature of millions of blue-collar workers in society. This is evidenced by as many as 83 percent of service partners reporting increased dignity in society, within their family, community and with customers, as compared to life before partnering with Urban Company, according to the company's Annual ESG report. 

But beyond the compelling numbers story lies a fundamental truth: no task is inherently small or big, and there’s beauty in any job that’s well done. Upskilling, therefore, isn’t merely a statistical necessity or a shiny corporate strategy. If anything it’s the single most powerful tool for corporations to empower people to take pride in what they do, no matter their social strata or societal biases.

The Omidyar report also estimates an additional 100 million people entering the workforce and suggests that upskilling them would potentially help increase India’s GDP by at least 20 per cent and accelerate us towards becoming a $5 trillion economy.

As we stand on the cusp of cashing in on our demographic dividend, upskilling won’t merely prepare India’s youth for jobs of the future but also empower them to lead fulfilling and dignified lives.

Govt. Regulations:

The gig economy in India is largely unregulated, resulting in less job security and marginal returns. However, the Indian government has taken some steps to protect the rights of gig workers. The Ministry of Labour and Employment suggested a new labor code in 2020 that would provide gig workers with access to social security benefits.

The Indian government can regulate the gig economy by providing clear definitions for gig workers under the new labor codes. The government should also ensure that gig workers are covered under the Occupational Safety, Health and Working Conditions Code, and their workspaces are safe and healthy. The government can also consider providing gig workers with access to social security benefits, such as health insurance, retirement benefits, and unemployment benefits.

Future:

The future of Gigonomics 2.0 is promising, as the gig economy continues to grow in India and around the world. With the rise of new technologies and platforms, gig workers are finding it easier to connect with clients and find work.

Gigonomics 2.0 is still evolving as more people embrace the gig economy and new technologies emerge to support it. It is an exciting time for the gig economy, and it will be interesting to see how it develops in the coming years.