Possible UPSC Questions
- GS III (Economy): “The classification of gig-workers as ‘self-employed’ disguises their economic dependence.” Discuss with reference to recent policy proposals in India.
- GS II (Social Justice): Evaluate the adequacy of the Code on Social Security, 2020 in protecting India’s gig and platform workers.
- GS III (Labour Reforms): Examine the challenges in extending minimum-wage and social-security coverage to location-based gig workers such as bike-taxi riders.
- Essay / Ethics: Technology-enabled flexibility should not translate into social insecurity. Comment.
Quick Outline of Key Facts
| Indicator | Present Status |
| Size of workforce | ~ 3 million (2020) ➔ projected 23 million by 2030 (VV Giri NLI) – ~7 % of all non-farm workers |
| Types of gigs | Web-based (digital tasks) & Location-based (ride-hailing, delivery, home services) |
| Regulatory gap | Not covered by Minimum Wages Act, 1948; only partially addressed in 4 Labour Codes (Code on Social Security defines gig & platform worker) |
| State legislation | Rajasthan Act 2023 (welfare cess), Karnataka Act 2023, Draft Telangana Bill 2025 |
| Worker profile | Students, women re-entrants, ex-daily-wage earners; increasing female participation in web-based gigs |
| Risks identified | No guaranteed wage, no paid leave, arbitrary algorithmic de-activation, heat-wave exposure, caste/class discrimination |
| Opportunities | Flexible hours, easy entry, digital payment trail (incipient formalisation), higher female earnings in some segments |
Summary
Digital platforms have created a fast-growing “gig economy” in which tasks are exchanged for payment via apps on a short-term, pay-per-piece basis. In India, gig workers are legally treated as self-employed and broadly fall into two categories: web-based freelancers (coding, content writing) and location-based service providers (Ola-Uber drivers, Zomato riders, Urban Company beauticians). Government think-tank VV Giri National Labour Institute estimates their number will surge from about three million in 2020 to 23 million by 2030, equivalent to 7 per cent of all non-agricultural workers.
Proponents hail platform work for offering accessibility and flexibility, especially to women, students and workers in regions with scarce formal jobs. Digital payments and algorithmic matching are portrayed as steps toward labour formalisation. However, field evidence reveals that “flexibility” often masks deep insecurity. Platforms treat partners as independent contractors, thereby avoiding obligations of minimum wages, paid leave, health insurance or pension. During India’s record 2024 heat-wave, app riders continued to toil outdoors without protective protocols, highlighting occupational risks. Cases of caste-based exclusion—such as delivery riders barred from lifts in gated apartments—add a social-justice dimension.
Regulation remains patchy. The four Labour Codes notified in 2020—particularly the Code on Social Security—recognise “gig” and “platform” workers and envisage schemes for life, accident and maternity cover, old-age protection and crèche facilities. Yet these provisions await implementation; a national Social Security Board is still to operationalise benefits. Only three States have moved ahead: Rajasthan’s 2023 Act mandates a welfare cess from aggregators; Karnataka has passed similar legislation; Telangana has issued a draft Bill requiring compulsory worker registration and welfare funding.
Classification as self-employment aligns with India’s historical pattern of disguised wage work: workers appear independent but remain economically dependent and poorly paid, as sociologist Jan Breman argued. Arbitrary app de-activations, rating-based penalties and algorithmic opacity intensify precarity. Women’s higher gig earnings do not offset absence of safety nets or the double burden of unpaid care.
Stakeholders therefore demand: (i) nationally standardised data collection on platform labour, (ii) statutory floor wages and social-security contributions by aggregators, (iii) rights to collective bargaining, (iv) safeguards against algorithmic bias, and (v) heat-stress and accident insurance. Addressing these will determine whether India’s platformisation becomes a genuine pathway to productive, dignified employment or merely repackages informality in digital garb.
Significance to the UPSC Exam
- Illustrates contemporary labour-economics debates (formal vs informal, technological disruption) vital for GS III and Essay.
- Provides case material on federal initiatives (Rajasthan, Karnataka, Telangana) relevant for GS II (polity & social justice).
- Links to SDG 8 (decent work) and constitutional directives on worker welfare.
- Offers ethical dimensions of algorithmic management and occupational safety—useful for Ethics paper.
