India’s rapidly growing gig economy received significant support from the government as Finance Minister Nirmala Sitharaman unveiled the Union Budget 2025. The minister announced groundbreaking provisions to extend healthcare coverage to gig workers under the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (PMJAY), which is expected to benefit nearly one crore gig workers across the country.
Speaking during her budget speech, Sitharaman emphasized the importance of gig workers, stating, "Gig workers of online platforms provide great dynamism to the new-age services economy." This initiative aims to recognize their contributions and provide identity cards as well as registration on the recently launched e-Shram portal, which serves as the national database for unorganised workers.
The PMJAY scheme, regarded as the world’s largest health insurance scheme, covers health expenses of ₹5 lakh per family for secondary and tertiary care hospitalization. Notably, there are no waiting periods or restrictions on pre-existing health conditions, making it accessible for those most in need.
According to estimates, around 10 million gig workers are currently engaged throughout India. Although this is less than some estimates, it is clear the sector is growing and reshaping the employment ecosystem. The rise of quick commerce platforms like Zepto and Blinkit, alongside established players like Zomato, Swiggy, Amazon, and Flipkart, has resulted in significant demand for gig workers. Currently, about 7 million individuals work as last-mile delivery agents, and demand is forecasted to triple, reaching approximately 23.5 million by 2029-30.
Dr. KS Reddy, distinguished professor at the Public Health Foundation of India, voiced his support for the budget initiatives, stating, “The commitment to universal health coverage includes the most vulnerable sections of society. Providing insurance to gig workers is part of extending the ambit of such coverage.” With gig workers often facing precarious working conditions and financial instability from irregular incomes, this healthcare support aims to alleviate some of those challenges.
Despite the positive steps, the success of these initiatives largely hinges on effective implementation. Industry leaders, including Shaik Salauddin, national general secretary at the Indian Federation of App-Based Transport Workers (IFAT), urged the government to enforce strict data-sharing requirements between gig platform companies and the e-Shram portal. He stressed, "Without mandatory data-sharing, many gig workers will be unable to access these benefits." His call emphasizes the necessity for accountability from aggregator companies to make social security contributions for their workers.
Additional support for gig workers includes the introduction of ID cards which aim to formalize their status within the workforce. Madhav Krishna, CEO of Vahan.ai, stated the issuance of these cards would give gig work the validity it deserves, positioning it less as temporary employment and more as legitimate jobs. This formal recognition could encourage more individuals to explore gig work, fueling growth across various sectors.
The finance minister also outlined provisions for creating unique social security schemes for gig and online platform workers through public-private partnerships. States will be encouraged to collaborate with the India Infrastructure Project Development Fund for these proposals, highlighting the government’s commitment to advancing the socio-economic conditions of this workforce.
While some platforms like Zomato and Swiggy have already been proactive by providing health coverage and insurance for their gig workers, the comprehensive nature of the new measures speaks volumes about the need for foundational changes within the gig economy. These changes could substantially boost protections and benefits for gig workers who currently endure tough working conditions with limited support.
Despite these optimistic developments, experts caution against overestimations of the impact of the budget measures. The Code on Social Security, introduced by Parliament in 2020, establishes guidelines for health and maternity benefits, occupational hazards, and pensions for gig workers, but has yet to be fully implemented. Santosh Kumar from the Telangana Gig and Platform Workers’ Union noted the prolonged delays, saying, “Workers continue to await comprehensive national laws and dedicated welfare boards.”
The budget’s commitment to recognizing and formalizing the gig economy signals progress, yet the focus now turns to effective implementation. With the gig economy projected to contribute 1.25% to India’s GDP and create up to 90 million jobs by 2030, the financial future of millions hungers for the practical realization of these legislative moves.
Funding for healthcare benefits, support for digital infrastructure, and the actualization of social security measures could alter the working lives of gig workers significantly. Recognizing their status within the employment ecosystem is not merely beneficial; it is necessary for the overall growth and stabilization of the economy. With the industrial revolution and digitization taking hold at unprecedented rates, it remains to be seen how efficiently the government will navigate these challenges and successfully integrate gig workers within India’s formal workforce.