India’s fast-growing gig and platform workforce is reshaping the world of work, creating new opportunities in urban and semi-urban centres while also posing significant challenges around social security and worker protection.
With its half-a-billion-strong labour force, the world’s youngest demographic profile, rapid urbanisation, and widespread smartphone penetration, the country is emerging as a global hub for gig-driven transformation, according to official data.
The gig economy, broadly defined as a system where individuals earn outside traditional employer–employee relationships, has seen strong growth in ridesharing, food delivery, logistics, and app-based professional services.
The government estimates that this sector will employ more than one crore workers in 2024–25. NITI Aayog projects this number to more than double, reaching 2.35 crore by 2029–30, highlighting its increasing weight in India’s labour market.
A Shifting labour market
Unlike traditional employment, gig and platform work relies heavily on digital platforms to connect workers with customers. Ridesharing apps, food delivery services, freelance platforms, and logistics aggregators have opened new avenues for flexible work, especially for young Indians seeking supplemental income.
However, while the sector generates livelihood opportunities at scale, it also leaves workers vulnerable due to the absence of formal contracts, job security, or access to benefits such as health insurance and pensions.
Recognising both the opportunities and the risks, the government has begun introducing a framework to integrate gig and platform workers into the social security net.
Social security code brings recognition
The landmark Code on Social Security, 2020, passed by Parliament, for the first time, formally defines “gig workers” and “platform workers.” The law consolidates and simplifies nine existing legislations, including the Employees’ Provident Fund Act, Maternity Benefit Act, and Payment of Gratuity Act, into one comprehensive code.
Its provisions extend social security to employees in the organised and unorganised sectors, self-employed individuals, and gig workers. For this category, the Code foresees schemes for provident funds, pensions, health and disability insurance, maternity benefits, and accident cover.
It also calls for the creation of a National Social Security Board to oversee the welfare of unorganised, gig, and platform workers, and the setting up of a dedicated Social Security Fund supported by government contributions, platform companies, and workers themselves.
Labour ministry officials have emphasised that the intent is to “acknowledge the contribution of gig workers to India’s economy and ensure they are not excluded from the protections available to other segments of the workforce.”
Budget push for gig workers
The Union Budget 2025–26 has carried this forward with targeted measures for platform-based workers. These include:
- Registration of online platform workers on the e-Shram portal,
- Issuance of official identity cards, and
- Extension of healthcare benefits under the Ayushman Bharat Pradhan Mantri Jan
Arogya Yojana (AB-PMJAY)
AB-PMJAY provides health coverage of up to ₹5 lakh per family per year for hospitalisation across more than 31,000 empanelled public and private hospitals. While the government has announced the inclusion of platform workers in this flagship scheme, the rollout is still awaited.
e-Shram Portal
Launched in August 2021, the e-Shram portal is central to the government’s strategy of building a comprehensive national database of unorganised workers. The portal assigns registrants a Universal Account Number (UAN) and serves as the entry point for accessing benefits.
As of August 3, 2025, more than 30.98 crore unorganised workers have registered, including over 3.37 lakh gig and platform workers. Uttar Pradesh tops the list with 8.39 crore registrations, followed by Bihar (3 crore) and West Bengal (2.64 crore). A significant portion of these are women. In Uttar Pradesh alone, 4.41 crore women have signed up.
Officials say awareness campaigns, coordination with state governments, and integration with welfare schemes have helped boost registration numbers. The ministry is also working to ensure that registered workers can seamlessly access health, insurance, and pension benefits in the coming months.
The road ahead
As India’s gig economy continues to grow, policymakers, companies, and workers face the shared task of ensuring the sector remains both dynamic and fair.
Analysts believe that expanding social security coverage, ensuring timely rollout of health schemes, and encouraging compliance from platform companies will be critical in shaping the sector’s future.
For now, initiatives like the Social Security Code and the e-Shram portal represent a decisive shift in recognising gig workers as a formal part of India’s labour landscape.
With millions already registered and more expected to join, the focus will now shift to delivery, ensuring that the promise of dignity, protection, and opportunity becomes a reality for every gig worker.