According to the Economic Survey of 2020-21, India’s Gig economy is the largest in the world. The country has become the largest market of Flexi staffing as it has embraced e-commerce and online retailing on a wider scale mainly during the pandemic situation.

What is the gig economy?

The gig economy is that economic structure where short-term contractors or freelancers are hired by the companies to carry specific tasks for a short period and not on a permanent basis. A gig economy undermines the traditional economy where employees were hired permanently and follow a 9-5 working regime.
For instance- Food delivery boys, uber/ola cab drivers, content writers, photographers, construction workers, on-demand workers, etc.

It is observed that the gig economy flourished mainly during the pandemic-produced lockdown, where online retailing increased tremendously.

In the occurring situation, companies have started remodeling their business operations and plans and are hiring freelance talents.
Due to a standstill in the economy, the employers drew out employees and replaced them with freelancers that helped these companies cut their costs during this economic halt.

Why gig is going quick?

The gig economy is gaining so much popularity today because of its flexibility. It empowers people to join any company and work there for a short, limited time and then can switch to another company. This gave freedom to the people to work with the company of their choice. Under this working environment, people can freely balance their work and relationships and can even do multiple projects at a time that suits them.

Also, this new culture proved efficient for the company as well. Companies do not have to hire full-time employees and can thus save costs.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) had predicted that India’s gig economy would grow at a compounded annual growth rate of 17 percent to touch a figure of $455 billion in the next three years. India at present has around 15 million freelance workers engaged in projects in sectors like IT, HR, and designing.

Challenges in the Gig economy:

Despite having favorable working culture this environment is facing some serious challenges that needs to be dealt with.
A. these freelance workers have no benefits or financial rights like minimum wages, health benefits, sick leaves, or even retirement benefits to fall back on.
B. the payment of their work is done once the project is complete. This grips them in a sense of financial insecurity.
C.lack of financial protection is also stopping many people to join this.
D. many gig workers are getting payment lesser than the minimum wage guaranteed which is unethical.

Amid these challenges, the government has introduced the Code on Social Security 2020, which provides them with social security benefits. This social security fund also includes gig workers.

Thus, with fast-growing technology and digitalization, the gig economy is going to rise increasing in the coming days. It is a boon for the freelancers that our government has recognized them and gave them much security.