The gig economy, which was earlier considered limited to jobs like delivery or driving, has now also gained a foothold in high-skill areas like tech, design, content, and analytics. Freelancing platforms and remote work culture have further empowered it. Lakhs of youth in India are now adopting it as the start of their career or as a side income. Although there are many challenges in this, the government's initiative has emerged as a ray of hope in this direction.

What is the gig economy?

Gig means temporary. Gig workers are usually freelancers who are hired for a particular task or project. It offers flexibility and self-reliance, which is very much liked by today's youth.

There is a lot of demand abroad, too.
Developed countries like the US, UK, Canada, and Australia have deeply integrated gig work into their economies. According to the 2024 Upwork report, 38% of the US workforce is freelancers, of which 79% have at least a bachelor's degree and 47% provide knowledge-based services in areas such as IT, consulting, and marketing.

AI and remote working have transformed the job market. Companies are now preferring to hire freelancers for lower costs and immediate availability.

Growing influence of the gig economy in India

Traditional jobs in India are also changing due to automation. In such a situation, many new graduates are looking at gig jobs as an entry into the workforce. India currently has more than 10 million gig workers in sectors such as software, professional services, digital marketing, healthcare, and media. According to the NITI Aayog report, this number is expected to reach 23.5 million by 2030.

Demand growth and opportunities
Flexing's report shows that the demand for independent professionals is expected to grow by 38% in 2024-25. Technology services (25%) are at the forefront of this, with AI-related projects contributing about 10%. Apart from this, 25% of freelance projects are location-independent and can be outsourced.

Career growth and challenges
The gig sector may be an entry-level career opportunity, but gig professionals can look at many career growth options over time. Successful startups can be started by gaining experience and networking with the client base. Gig jobs offer flexibility in projects, clients, skills, and work hours. It also provides an opportunity to work with international clients.

However, the lack of fixed income and job security in gig jobs is the biggest challenge. They do not provide social security benefits like PF, ESI, or health insurance. There is also a risk of the reliability of clients and a delay in payment. Income growth depends on upskilling yourself with skills in demand.

Government Policies
The Government of India has announced to provide identity cards, e-shram registration and healthcare protection to gig workers under the PM Jan Arogya Yojana in the 2025-26 budget.
The Karnataka government has set up a platform-based Gig Workers Welfare Board to provide social security and welfare benefits for gig workers.

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