The Indian government took significant strides toward supporting gig workers during the Union Budget 2025 presentation, led by Finance Minister Nirmala Sitharaman on February 1, 2025. Recognizing the dynamic contributions of gig workers to the economy, the government is set to roll out identity cards and registration for this burgeoning workforce.
"Gig workers provide great dynamism to the new-age economy. The government will arrange for gig workers' identity cards and registration. Gig workers will get health care under PM Jan Arogya Yojana. Measures will be taken to help over one crore gig workers," Sitharaman declared during her budget address.
This comprehensive initiative aims to benefit nearly 10 million individuals working within the gig economy, which has increasingly become pivotal as sectors like quick commerce and food delivery flourish. Companies such as Zomato, Swiggy, and Blinkit rely on gig workers for efficient operations, especially as they cater to rapid delivery demands.
The importance of this recognition is underscored by NITI Aayog’s estimation, which suggests India's gig economy could employ more than 23 million individuals by 2030. With the lone reliance on short-term contracts means gig workers traditionally miss out on the social security benefits typically granted to full-time employees.
Alongside identity cards, gig workers will gain access to healthcare through the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY). This scheme, touted as the largest health assurance initiative globally, provides health coverage of up to ₹5 lakh per family per year for secondary and tertiary care, with no waiting periods or limitations on pre-existing health conditions.
According to reports, "Not having the health coverage enjoyed by many people who are in traditional full-time employment, gig workers are particularly vulnerable to medical expenses. These costs can sometimes be catastrophic," remarked Dr. Rajeev Jayadevan, public health expert and past president of the Indian Medical Association.
This monumental shift reflects the government's recognition of the gig workers' plight, providing what Balasubramanian A, Senior VP and Business Head at TeamLease, describes as, "much needed social security cover". He emphasized the significance of collecting personal information by issuing ID cards through the e-Shram portal, which is envisioned to streamline these workers' access to welfare programs.
Launched on August 26, 2021, the e-Shram portal acts as a key instrument to register and support unorganised workers, issuing them Universal Account Numbers (UAN) to simplify access to government welfare schemes. By facilitating the identification of gig workers, the government aims to develop frameworks for comprehensive social security benefits.
The e-Shram initiative is poised to bolster the social and economic development of urban workers, as outlined by Sitharaman. Alongside healthcare benefits, refurbishments to the PM SVANidhi scheme will also provide enhanced bank loans and UPI-linked credit cards for gig workers, solidifying their financial foothold.
Reports indicate significant growth trends within the gig economy, as it is anticipated to expand at a compound annual growth rate (CAGR) of 17%, potentially reaching $455 billion by 2024. Such predictions reflect the sector's capability to add up to 1.25% to India's GDP by 2030.
Despite these ambitions, systematic challenges remain. The Code of Social Security, enacted by Parliament, outlines provisions for life and disability cover, health and maternity benefits, and pensions for gig workers. While these legal frameworks exist, many remain yet to be fully implemented, emphasizing the urgency of translating legislative action to tangible benefits.
The demand for greater worker protections has been echoed widely, particularly as gig workers navigate precarious contract terms and lack traditional employment benefits. Sitharaman’s announcement marks the beginning of formal recognition within the recent budget, creatively aligning the government's direction with the realities faced by many.
Indeed, the swift adaptation of quick commerce services like Zepto, Blinkit, and similar operations has heightened the need for gig labor. Notably, Zomato was reported to have engaged 1.5 million delivery partners as of 2024, illustrating the sector's vast scalability.
Then there’s the matter of safety; gig workers often spend long hours delivering orders, leading to discussions about the necessity for regulatory oversight to safeguard their well-being and secure their livelihoods.
Looking to the future, the strategic inclusion of gig workers under government welfare programs not only addresses immediate concerns but also signals progressive reform aimed at supporting this integral segment of the workforce. With the economic conditions set to evolve and grow, initiatives from the government such as these are undoubtedly steps toward future-proofing the sector as it expands.
The implementation of such measures clearly highlights the intent behind protecting and uplifting gig workers. Once this sense of inclusion takes hold, it sets the foundation for addressing broader challenges of job security and access to necessary benefits, legitimizing gig work as part of India’s dynamic and diverse employment ecosystem.
With the Union Budget 2025 initiatives targeted at gig workers finally establishing them within the frameworks of social welfare, momentum is building. This development is poised to usher significant progress for this group which has been previously overlooked—providing them not just identity but acknowledgment as contributors to the economy.