India has 12 million gig workers, 2% of total workforce: Economic Survey

India’s gig workforce has grown 55% from 7.7 million in FY21 to 12 million in FY25, driven by increasing smartphone penetration and (Unified Payments Interface) UPI transactions, according to the Economic Survey 2025-26 tabled in the Parliament.

The gig economy, encompassing delivery, ridesharing, and freelancing, has witnessed structural growth, transitioning informal jobs into ecosystem-integrated roles, the survey noted.

“From 7.7 million workers in FY21, the sector witnessed a 55% increase to 12 million workers in FY25, driven by smartphone penetration among over 800 million users and 15 billion UPI transactions per month,” shows the Eco Survey.

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Gig work refers to short-term, task-based or project-based work carried out on a freelance or independent basis, often mediated through digital platforms. According to the ILO, gig work is typically performed by self-employed or independent contractors who obtain clients and projects through online platforms or applications and are paid upon completion of tasks or projects rather than receiving a regular wage.

Gig workers continue to engage on a task-by-task basis with flexible hours and pay.

“Now representing over 2% of the total workforce in India, growth of gig workers outpaces overall employment, with non-agricultural gigs projected to constitute 6.7% of the workforce by 2029-30, contributing ₹2.35 lakh crore to GDP,” the Eco Survey said.

“Due to its task-based and independent nature, gig work offers flexibility by allowing workers to choose when, where, and how much they work, making it particularly attractive to those seeking to balance employment with personal responsibilities such as caregiving or education,” the survey noted.

While the gig economy is booming, income volatility persists, leading to challenges in accessing credit, the survey pointed out.

“Platform algorithms control work allocation, performance monitoring, wages, and supply-demand matching, raising concerns about algorithmic biases and burnout. About 40% of gig workers report earnings below ₹15,000 per month,” it said.

“Limited skilling and fears of job losses due to technological advances such as artificial intelligence (AI) and machine learning (ML) add to worker vulnerability,” said the survey.

As the gig economy expands, its impact on employment and economic growth will become increasingly evident, said the Economic Survey. “While it offers unprecedented opportunities for revenue creation and economic diversification, addressing its challenges is crucial to ensuring long-term and equitable growth. The Labour Codes have formally recognised gig and platform workers, expanding social security, welfare funds, and benefit portability. Going forward, ensuring algorithmic transparency and promoting worker-friendly practices will be crucial,” it cautioned.