India’s gig economy is undergoing transformative growth, redefining the structure of the country’s workforce. From just 7.7 million workers in 2020–21, the sector surged to nearly 12 million by FY 2024–25. Now making up over 2% of India’s total workforce, this rise reflects a major shift fuelled by growing digital access, rapid urbanisation, and increasing demand for flexible employment.
Who Are Gig Workers?
Gig workers earn their livelihood through task-based jobs, without the benefits of conventional employment. They include app-based drivers, delivery agents, domestic service providers, and others offering services via digital platforms. While they don’t fall under formal employment, their work is often digitally logged and paid, bringing a semi-formal structure to what was previously part of the informal sector.
From Informal to Structured Engagement
Traditionally, jobs such as domestic work or carpentry operated in a completely informal setting, often paid in cash and without records. The gig economy has introduced a system where wages are standardized by platforms, and work is traceable. This structure not only ensures fairer pay but also brings informal workers into a more measurable, trackable system of employment.
Financial Empowerment Through Digital Records
One of the key enablers of financial inclusion for gig workers is digitised income documentation. This visibility gives them access to formal credit systems—something that was previously unattainable. However, due to irregular income patterns, traditional credit models often exclude gig workers. There’s a pressing need for credit systems tailored to the unique income flows in the gig space.
Innovations in Credit and Lending Models
To address these challenges, lenders are now leveraging alternative data—like gig frequency, earnings patterns, and task completion rates—to build credit profiles. Gig platforms increasingly offer microloans and salary advances through embedded finance. Meanwhile, India’s Account Aggregator framework supports safe data-sharing, enabling more inclusive, gig-specific financial products.
Looking Ahead: Opportunities and Hurdles
Projections indicate that by 2029–30, India’s gig economy could grow to 23.5 million workers—approximately 6.7% of the non-agricultural workforce. With the potential to add 1.25% to the GDP and create up to 90 million jobs in the long run, the sector holds transformative potential. Growth areas include white-collar freelancing and increased participation from women. However, income unpredictability, limited social protection, and worker safety remain significant concerns.
To ensure sustainable and equitable expansion, focused policy support on digital access, financial tools, and worker rights is essential. The future of India’s gig economy depends not just on its scale, but also on the strength of its foundation in inclusion and security.
