Page 25 - Banking Finance September 2025

ARTICLE

portunities for millions, especially semi-skilled and skilled changing job market. For businesses, especially startups and
workers. The synergy between urban consumer demand and SMEs, hiring freelancers or contractors offers cost efficiency.
on-demand service delivery has made these sectors hotspots It reduces expenses related to recruitment, training, and
for gig work, significantly contributing to the expansion and infrastructure while giving access to specialized skills. Over-
mainstream acceptance of India's gig economy. all, the gig economy creates a win-win situation-offering
freedom and earning potential to workers and flexibility to
Entrepreneurial Skills: An increasing number of Indians are businesses.
opting for independent work, side incomes, and multi-inter-
est careers, a shift accelerated by the COVID-19 pandemic. While the gig economy offers flexibility and income oppor-
Job disruptions and remote work during the crisis led many tunities, it also comes with several challenges. A major con-
to explore freelancing, online teaching, content creation, cern is the lack of job security, as gig workers are usually
and delivery-based jobs. Platforms like Upwork, YouTube, classified as independent contractors and do not receive
and various gig apps became lifelines for income and self- benefits like paid leave, health insurance, or job protection.
expression. This period encouraged people to monetize This is compounded by income volatility, since earnings fluc-
hobbies, build new skills, and pursue flexible work arrange- tuate based on demand, platform policies, and algorithms.
ments. As a result, the concept of portfolio careers-balanc-
ing multiple roles or income streams-has gained traction, Another issue is the absence of a social security net. Most
reinforcing the growth and acceptance of the gig economy gig workers are excluded from schemes like EPF, ESI, or
across India's workforce. pensions, leaving them financially vulnerable during illness,
unemployment, or old age. Platform dependency is also a
Corporate Adoption: Established companies in India are critical challenge, as gig workers rely heavily on digital plat-
embracing gig workers and freelancers to meet evolving forms that can change rules, incentives, or ratings with little
business needs and reduce the overheads associated with warning or consultation.
permanent staffing. This shift is especially evident in special-
ized domains like UI/UX design, cybersecurity, digital mar- Additionally, gender disparities pose serious concerns.
keting, and content creation, where demand for niche skills Women in gig work often face safety risks, especially during
often outweighs the need for full-time roles. By hiring on a late hours, along with challenges like lack of childcare sup-
project basis, firms gain access to top-tier talent without port and unequal pay, limiting their participation and
long-term commitments, enabling faster turnaround and growth.
greater flexibility. This approach also supports innovation,
as companies can tap into a diverse talent pool, while gig Regulatory and Policy Landscape
workers benefit from varied projects and greater profes- India's Code on Social Security, 2020 marks a pivotal move
sional autonomy.
toward recognizing and protecting gig and platform work-
ers. For the first time, these workers are formally defined
Pros & Cons
The gig economy offers significant advantages for both in-
dividuals and businesses in India. One of its key strengths is
flexibility, allowing workers to choose their schedules,
workloads, and employers. This is particularly helpful for
students, homemakers, and those balancing multiple respon-
sibilities. Gig work also acts as an important source of in-
come, especially during economic downturns. For example,
during the COVID-19 pandemic, many turned to gig plat-
forms to earn a livelihood when traditional jobs were lost.

Beyond income, gig work enables skill development by ex-
posing individuals to diverse roles and industries. This helps
them gain valuable experience and remain competitive in a

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