While presenting Union Budget 2025-26, Union Minister for Finance Nirmala Sitharaman included only three lines in a paragraph for gig workers in her speech and said, “Gig workers of online platforms provide great dynamism to the new-age services economy. Recognising their contribution, our Government will arrange for their identity cards and registration on the e-Shram portal. They will be provided healthcare under PM Jan Arogya Yojana. This measure is likely to assist nearly 1 crore gig-workers.”

This is obviously too little a relief for gig-workers, given the fact that there has been a boom in India’s gig and platform economy in recent years, and it is expected to rise to 2.35 crore by the year 2030. There has not been any social security coverage so far, though far back in 2020-21 India had about 77 lakh gig and platform workers, as per NITI Aayog’s report titled “India’s Booming Gig and Platform Economy” published in June 2022.

Achievement so far in protecting the gig and platform workers from the uncertainties of the labour market is only construing definitions as to what makes workforce “gig workers” and “platform workers” and certain provisions related to then under the Code on Social Security, 2020 which has been enacted by the Parliament of India, but pending implementation. It is one of the four controversial labour codes that Union Government is planning to implement in the next financial year 2025-26, but has not been officially announced. The joint platform of the 10 Central Trade Unions (CTUs) have been resisting their implementation and have vowed to oppose them since they believe these codes anti-worker and pro-Corporate, if needed by all India strike actions.

Union Minister of State for Labour and Employment, Shobha Karandlaje has assured the Rajya Sabha in November 2024, that the Code on Social Security, 2020 provides for framing of suitable social security measures for gig workers and platform workers on matters relating to life and disability cover, accident insurance, health and maternity benefits, old age protection, etc. However, about two months after on February 1, 2025, the Union Budget 2025-26 had disheartened the gig and platform workers, since there were left almost unprotected.

Merely identity card for the gig and platform workers, allowing them registration on e-Shram portal, and coverage under PMJAY, is too little to take care for them. Lot of work needed to be done as we can see even in the statement of Union Minister of State for Labour and Employment made in the Parliament.

Gig and platform workers have been hired and fired on whims and fancies of their employers, as we have seen in the recent months. The needed concrete protection in terms of their service conditions, and they were expecting much more than what has been announced in the Union Budget 2025-26.

However, government is boasting much more that it has announced. The Union Minister of Labour and Employment Dr Mansukh Mandaviya has boasted that the budget announcements for gig and platform workers “is a transformative step towards s their social security and well-being. This initiative will empower nearly 1 crore gig workers. Beyond this, the Government remains committed to extending social security benefits to workers in other unorganised sectors as well, ensuring dignity, security, and prosperity for every worker in the country.”

Dr Mandaviya also said that a pilot initiative has already been undertaken by the Ministry of Labour & Employment to register platform workers and aggregators on the e-Shram portal. An Aggregator Module has also been piloted enabling digital platforms to onboard themselves and their workforce onto India’s national database for unorganised workers. As part of this pilot, four leading aggregators—Urban Company, Zomato, Blinkit, and Uncle Delivery—have already registered.

Dr Mandaviya has also said, “With enhanced resources, the initiative will ensure that every gig and platform worker has access to essential social security benefits through e-Shram portal, reinforcing the Government’s commitment to safeguarding the interests of this workforce.”

Union Minister of Labour and Employment has also assured that the Ministry remains focused on the seamless execution of these initiatives, addressing any operational challenges, and strengthening collaboration with digital platforms. By combining early groundwork with large-scale policy support, the Government aims to create a robust safety net for gig workers, ensuring their security and well-being in India’s evolving employment landscape, added Dr Mandaviya.

It should be noted that gig and platform services have been expanding at a time when net employment in even Central Public Sector Enterprises(CPSEs) and Railways are on the decline. In 2023-24, CPSEs employed only 8.14 lakh while Railways employed only 12.52 lakh workers down from 22.19 lakh and 16.52 lakh in 1990-91. Even Banks in the public sector employed 7.46 lakh workers in 2023-24 as against 8.47 lakh in 1991-92.Defence services has about 14.2 lakh employees. However, only five biggest IT companies – TCS, Infosys, Wipro, HCL and Tech Mahindra had 15.34 lakh workers in December 2024. Rise in the gig and platform sector can be imagined by the fact that Uber had 10 lakh drivers, Zomato 4.8 lakh delivery boys and 1.45 lakh quick commerce riders, and Swiggy had 5.43 lakh transacting delivery partners by December 2024. There are many other platforms showing fast growth.

The number of gig and platform workers are already multiple times of the CPSEs, Railways, and public sector banks. Hence, providing security to their jobs and life is a challenging task. Workforce in manufacturing sector has come down to 11.4 per cent in 2023-24 of the entire workforce. Trade, hotel, and restaurants employ 12.2 per cent workforce, while other services 11.9 per cent. Agriculture employed 45.76 per cent. Employment in the gig and platform services has been rising, and it will be over one crore in 2025-26, but their wages are low and service conditions are informal. (IPA Service)