Indians are experiencing a high surge in freelancers. Many people are relying on online work and resisting traditional methods, drastically changing the Indian gig economy. Gig workers are people working for small work arrangements and do not have a fixed job.
The freelance economy has been growing, and according to the reports, 56% of new employment in India is being created by the gig economy, which is an excellent contribution to the Indian economy. The use of digital devices is creating opportunities for people on a short-term basis.
Applications like Zomato and Uber can be an excellent example of platform workers, where people work for a specific organization and provide a particular service to the company. The gig economy is expected to double by 2025 and majorly grow the Indian economy.
Freelancers work on a contract basis, where organizations pay fixed fees based on the contract and provide work on time. NITI Aayog recently launched a report on India's gig economy which states the gig workforce will expand to 2.35 crores by 2030. The gig economy makes up 1.5% of the workforce in India, and it is envisioned that more social security should be provided to the gig economy.
Introduction to the Gig economy
The gig economy comprises workers who work temporarily outside the traditional way and provide specific Services to the company for a fixed fee. The Indian Gig economy report speculated a lot about Indian freelancers and platform workers, which suggested different measures for the workers.
Referring to the demand in the gig economy, a joint report by the Boston Consulting Group (BCG)and Michael & Susan Dell Foundation stated that the gig economy can service 90+ million jobs in its economy alone. This fact translates to more than $250 billion in volume and is expected to be incremental by 1.25% to India's GDP.
Gig workers work temporarily, like freelancers, or get engaged for a definite gig that would pay them well. The report noted the current situation of the sector, its size, and the potential it holds. Many companies offer opportunities to platform workers and freelancers who earn money by completing temporary services.
Social security is also being questioned, and the NITI Aayog recommends increasing the social security measures for these workers. The code on social security is the first the government recognized the workers. The report recommends expanding social security as per the code on social security.
The NITI Aayog report: Things you need to know
Digitalization has drastically changed the workforce and how people earn money. There are different ways a person can earn money using the internet, and there are other ways gig workers can use the opportunities to make money. The report examines the size of the market, the opportunities, and the potential this sector has. After the pandemic, the way people used to work has changed.
The Indian gig economy has been perceiving more work, and people have more opportunities to earn money using their devices. The code on social security has been a good initiative for the platform workers and freelancers as they're offered social security and a cut on taxes which can help them manage things.
The report is to support the workers and provide them with different facilities that can be useful. The projections were made, and it concluded that making India part of the USD 5 trillion economy by 2025 will have a significant role.
Government initiatives are reliant on outcome-based models of skilling and job creation fuelled by industry associations. The report recommends bolstering skill development initiatives and thus boosting gig opportunities in the present and near future:
1. Outcome-based Skilling
The report recommends strengthening industry linkages and helping candidates in skill training to receive further on-the-job training. The National Apprenticeship Training Scheme and the National Apprenticeship Promotion Scheme, with their effective Dual System of the Training initiative, combine theory and practical applications from industry partners effectively. It aims to provide students with direct practical experience in the latest technologies.
2. Platform-led Transformational Skilling
The report recommends promoting platforms that fuel upskilling and diversification of the workforce with specific industry tests. The recommendation is to connect to the Ministry of Skill Development and Entrepreneurship for guidance and direction along with National Skill Development Corporation (NSDC) for promoting the abilities of skilled workers along with micro-entrepreneurship in multiple sectors.
3. Transformational upskilling
This approach enables horizontal and vertical mobility for skilled workers from different walks of life, empowering them to boost their earning capabilities. Platforms can enable "Skill Certificates" for workers based on their gained skills.
4. Platform-skilling Models with Government Schemes
Based on India's National Skill Development Policy, the new skilling platforms can formulate roadmaps and strategies for skill development, defining the approach towards nationwide ends-based skill development for the youth, which is mobile-first.
5. Integration of Employment and Skill Development portals:
The government promotes the integration of the Skill Development and Employment/ Social Security portals like E-Shram along with the Udyam portal of SMEs to provide a prompt one-stop solution for gig workers in India.
RAISE Framework based on operating the Code on Social Security (CoSS), 2020
As both central and state governments are proposing rules under CoSS 2020, the government recommends the five-pronged RAISE framework to ensure full access to social security for gig and platform workers:
● Recognize the diversity of platform work for designing equitable programmes.
● Allow social security boost through innovative financing mechanisms.
● Incorporate specific interests of platforms, considering the impact on job creation
● Support workers to benefit from schemes and welfare programmes through awareness.
● Ensure benefits are accessible to all.
Further recommendations and initiatives for driving the gig sector forward
As per the recommendations, the report suggested more social security for the sector. Initiatives like creating a platform for people to upskill their skillset and grow their market can be good options for local businesses. Good funding support for workers who want to market their product or service can be helpful too. One can expect 350 million freelance jobs by 2025, according to experts.
Small businesses that create valuable products or offer services should have a platform to market their product or services. The gig sector has good support from the Indian companies who offer them work, which works both ways.
The government recommends industry leaders promote gender sensitization and accessibility awareness programs with civil society organizations and NGOs. Diversity and inclusion form a crucial tenet of the efforts.
