Economic Survey 2026: Gig workforce surges, set to form 6.7% of India’s jobs by 2029–30

India’s gig economy has expanded at a blistering pace over the past four years, emerging as one of the fastest-growing segments of the labour market, but persistent income volatility, weak access to credit, and limited social security continue to leave millions of workers vulnerable, the Economic Survey 2025–26 said.

Tabled in Parliament on Thursday, the Survey said the number of gig and platform workers rose from 7.7 million in FY21 to 12 million in FY25, marking a 55 per cent increase, driven by rapid smartphone adoption, deepening digital payments infrastructure, and the proliferation of app-based platforms across sectors ranging from e-commerce and logistics to healthcare and IT services.

Gig workers now account for over 2 per cent of India’s total workforce, with growth outpacing overall employment. The Survey projects that non-agricultural gig jobs will constitute 6.7 per cent of the workforce by 2029–30, contributing an estimated ₹2.35 lakh crore to GDP.

Structural shift in employment

The Survey said India’s labour market is undergoing a structural transformation, with traditional permanent employment giving way to hybrid models that blend formality, contract work, and task-based engagements. Digital platforms have redefined employer–worker relationships, often replacing direct bipartite arrangements with tripartite models mediated by algorithms.

Gig work, typically defined as short-term, task-based employment facilitated through digital platforms, offers flexibility in working hours and location, making it attractive for those balancing education, caregiving, or supplementary income needs. However, this flexibility has come at the cost of stability, the Survey cautioned.

Earnings volatility and credit constraints

Despite rapid expansion, income insecurity remains a core challenge. Around 40 per cent of gig workers earn less than ₹15,000 (around $163) per month, while irregular cash flows limit their ability to access formal credit due to “thin-file” credit histories, the Survey said.

These vulnerabilities have increasingly spilled into the public domain, with delivery and ride-hailing workers staging protests in several cities in recent weeks against declining per-order payouts, opaque incentive structures, and mounting work pressure linked to ultra-fast delivery models.

Platform workers affiliated with food delivery and mobility apps have flagged rising algorithmic control over work allocation and earnings, arguing that the push for faster delivery times has come at the cost of income stability and safety.

Platform algorithms increasingly determine work allocation, wages, and performance assessment, raising concerns around opacity, bias, and worker burnout. Limited skilling opportunities and the looming impact of automation, artificial intelligence, and machine learning further exacerbate job insecurity, particularly for low-skilled workers.

The concerns flagged by the Survey mirror recent policy debates, with several states beginning to explore regulatory responses to platform dominance. Karnataka, for instance, has moved to mandate a welfare contribution from digital aggregators to fund social security measures for gig workers, marking one of the first state-level interventions of its kind.

Ashok Varma, Partner and Inclusion Ecosystem Leader at Grant Thornton Bharat, said the Economic Survey’s emphasis on labour reforms could provide a stronger footing for gig workers.

“The new labour codes are expected to accelerate the formalisation of the labour market and provide much-needed recognition and protection to gig economy workers,” Varma said.

The push for formal recognition has gained political traction as well, with lawmakers and civil society groups increasingly calling for minimum pay standards, social security coverage, and safeguards against arbitrary worker deactivation on digital platforms.

While e-commerce and logistics continue to dominate gig employment, the Survey highlighted growing penetration across manufacturing, retail, BFSI, healthcare, education, construction, hospitality, and IT-enabled services, reflecting the widening role of platform-based labour in India’s non-farm economy.

Policy response gathers pace

The Survey pointed to the Code on Social Security, 2020, which formally recognises gig and platform workers as a distinct category, extending the legal framework for welfare funds, benefit portability, and social security coverage. However, it warned that legal recognition alone is insufficient without effective implementation.

Strengthening access to provident fund coverage, health insurance, maternity benefits, and emergency savings mechanisms is critical to making gig work sustainable, it said. The Survey also called for algorithmic transparency, clearer grievance redress mechanisms, and worker-friendly platform practices.

Citing global trends, the Survey noted that jurisdictions such as Spain, the European Union, and cities like New York and Seattle have moved towards tighter regulation, minimum wage guarantees, and safeguards against arbitrary deactivation of workers. India, it said, must balance flexibility with protection to avoid entrenching precarity in a rapidly growing segment of the workforce.

The Survey emphasised that gig work should evolve into a matter of choice rather than economic necessity. Policy focus should shift towards upskilling, access to productive asets, and financial inclusion, enabling workers to move into higher-paying, more secure roles.

“The goal of gig-economy policy should be to reshape the terms so that workers exercise real choice rather than being pushed into gigs due to weak demand, skill mismatch, or the absence of a safety net,” the Survey said.

As the gig economy becomes an increasingly visible pillar of India’s growth story, the Survey made clear that its long-term success will depend not just on scale, but on the quality, security, and dignity of work it creates.