The transaction value of the volume of work performed by gig workers could be worth more than $250 billion. In contrast, the overall gig economy could contribute an incremental 1.25 percent approximately to India’s GDP, according to a report by Boston Consulting Group and Michael & Susan Dell Foundation. Gig work is broadly referred to on-demand jobs with little to no formal contracting. Globally, over 200 million are considered involved in the gig economy.
The long-term potential of India’s gig economy is expected to be comprised of around 35 million skilled and semi-skilled jobs within industry sectors, around 5 million jobs in shared services such as facility management, transportation, and accounting, around 12 million household demand for different services, and around 37 million unskilled jobs across other sectors in the economy. However, construction, manufacturing, retail, transportation, and logistics could be the four largest sectors accounting for more than 70 million of the expected gig jobs in India.
Gig jobs have existed in India for decades, given the country’s large informal economy and ‘casual workers’ segment, including temporary farmworkers, daily-wage construction laborers, and household help. While personal references and offline networks continue to help source and meet the need for such on-demand jobs, the use of technology and the internet has enabled match-making much easier between employer and employee. Notably, while the convenience of work and flexibility might be some of the benefits in the gig model, there have been concerns around minimum wage requirements, worker protection, and consumer rights.