Rise of Gig Economy in India: It is characterized by temporary, flexible freelancing jobs that are typically facilitated by an online platform that acts as a bridge between the service provider and consumers. The gig economy has revolutionized the employment landscape by reshaping traditional employment models and is creating new opportunities and challenges for both employers and employees. In this blog we will explore the concept of the Gig economy, the factors contributing to its growth and the challenges it poses.  

Gig economy is not a new term any more we have become a part of Gig economy without realizing it, Let us see how: going out? Book an Uber. Want a painter, beautician, or electrician? Urban Company is there to our rescue. Want a freelance job? Try Upwork. This is Gig economy brining the consumers and service providers together on a digital platform. 

Rise of Gig Economy in India 

The Gig economy has grown exponentially in the past few years driven by the digital revolution, changing preferences of the workforce and a strong need for flexible and cost-effective employment solutions. A recent report from Boston Consultancy Group states that India is expected to have around 90 million gig jobs contributing to 1.25% of the GDP. 

The factors that contribute to the growth  

1. Digital Penetration – India has over 936 million internet subscribers and the internet penetration is rapidly growing even in rural areas. Access to the internet is one of the strong enablers that build the foundation for Gig economy.  

1. Smartphone Accessibility – There are around 650 million smart phone users in India. The growth rate of smart phone users has slowed down after 2022, still the existing users are substantial in number. The decreasing prices of basic smart phones makes it accessible to the lower income groups as well, further adding to the number of internet users.  

1. Demographics – The Indian youth are gravitating more towards the freelancing jobs providing flexi hours, and also the trend of moonlighting is picking up where people can do two or more jobs and increase their earnings. 

1. Economic Necessity – the high unemployment rates, underemployment, income disparities, rising cost of living and less social security are forcing people to find newer ways to survive and grow.  

Benefits of the Gig Economy 

The gig economy offers several advantages for both workers and businesses. Employees get flexibility, diverse work opportunities enhancing their skills and income, moonlighting allows a full-time programmer to take varied assignments during their free time. The business houses get cost efficient workers with a easy scalability as per the demand, and the employees with desired skillset can be picked for specific projects. One of the biggest advantages is that the size of the organization can be adjusted as per the demand. 

Challenges in the Gig Economy 

Many challenges needs to be addressed to make this a successful model. 

Job Security – there is no job security for gig workers which is offered by a full-time employment. They are generally deprived of benefits like health insurance, retirement plans or paid leaves this absence of any safety net adds the financial stress and uncertainty.  

Income Volatility-  The earnings of a gig workers are very uncertain it depends on demand, seasonal trends, and competition. The inconsistency of income is a big hurdle in financial planning and can be very challenging leading to financial instability. Lack of regular income and its unpredictability makes it difficult for the gig workers to avail loan facility which adds to their financial issues. Traditional financial institutions are hesitant to extend credit or insurance policies to gig workers due to the unpredictability of their income and the lack of formal employment records. This can limit their ability to make significant investments, such as buying a home or starting a business. 

Regulatory Gaps – The legal and regulatory framework in India still does not cover all the aspects of the gig economy, there are a lot of grey areas regarding fair wages, rights of gig workers, and working conditions that lead to the exploitation of workers. Lack of social security schemes such as pension, health insurance and unemployment benefits do not cover the gig workers. This exclusion increases the vulnerability of such employees.  

Work-life Balance and career planning go for a toss in pursuit of flexibility, the irregular working hours sometimes also take a toll on mental and physical health 

Relevance of BA (Hons) Economics in Gig Economy

To understand the complexities of the gig economy you need to have a solid foundation in economic principles, you have the opportunity to get all this knowledge from K.R. Mangalam Unversity’s B.A.(Hons) Economics programme wherein you get a proper insight into the intricacies of the economy, employment patterns, employment trends, industry behaviour, etc.

B.A.(Hons) Economics Programme at K.R. Mangalam University

BA (Hons.) Economics is a three-year undergraduate degree intended to give students a sound understanding of the principles of Economics. The programme aims to enable students to develop an excellent understanding of the global economy and financial problems. Students will learn a set of skills that will enable them to engage in critical thinking and participate in discussions about a variety of intriguing issues in business, finance, and public policy.

Key Highlights of the programme:

• Consistent interaction with renowned academicians and top Industry experts.
• Internships and Placement Opportunities in leading companies
• Preparations for Competitive Exams for Banking, Insurance, Railways and SSC 
• Creative and enriching course curriculum blended with theoretical and practical aspects of economics

Conclusion 

The gig economy has its own set of benefits and challenges, as the digital platforms continue to grow and connect the workers with gig opportunities we must address the risks and challenges to ensure a more balanced and inclusive growth. Government initiatives and policies can help us harness the full potential of gig economy and contribute to creating a better world for gig workers.  

Also Read: Empowering India’s Economic Prosperity: The Rise of Indian Startups