Majority of India’s gig workers remain out of the government’s reach
While the number of registrations by gig workers on the e-Shram portal have increased, it has not been uniform across States
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Context
The Union government announced healthcare coverage for gig workers registered on the in the 2025-26 Budget. However, despite the announcement, data reveals a significant gap between the estimated size of the gig workforce and the number of workers actually registered on the portal, highlighting challenges in measuring and extending social security to this growing sector of the 'new age services economy.'
UPSC Perspectives
Economic
The rise of the gig economy (a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs) presents a major shift in India's employment landscape. While it offers flexibility and job creation, it often lacks traditional employer-employee relationships, leading to a deficit in social security (measures providing protection against various life risks). The article highlights the discrepancy between the estimated gig workforce (over 1 crore as per ) and actual registrations on the (under 10 lakh). This gap underscores the difficulty in formalizing the unorganized sector. UPSC often focuses on the challenges of informal employment; understanding the definition of a gig worker under the and the mechanisms proposed for their welfare, such as a dedicated social security fund, is crucial for GS Paper 3 (Employment and Inclusive Growth).
Governance
The , conceptualized as an Aadhaar-seeded , is a significant governance initiative aimed at tracking and delivering targeted benefits to the unorganized workforce. However, the low registration numbers among gig workers reveal limitations in the current outreach and registration mechanisms. The article points out that making registration a prerequisite for benefits, while logical for targeting, might exclude those unaware of or unable to access the portal. Furthermore, the lack of uniform registration across states, with highly urbanized states like Tamil Nadu and Kerala lagging, points to uneven implementation and potentially a digital divide. For UPSC, analyzing the effectiveness of such digital governance platforms in ensuring last-mile delivery of welfare schemes is a key aspect of GS Paper 2 (Governance and Social Justice).
Social
The gig economy, while providing income opportunities, often leaves workers vulnerable due to the lack of job security, paid leave, and comprehensive health coverage. The promise of healthcare coverage in the 2025-26 Budget is a positive step toward mitigating this vulnerability. However, the article highlights that the majority of gig workers are concentrated in the food industry, transportation, and domestic work, sectors often characterized by long hours and physical exertion. The failure of the to capture gig workers as a distinct category hampers the formulation of targeted social policies. Understanding the socio-economic profile of gig workers and the need for inclusive labor policies that protect their rights without stifling the growth of the platform economy is vital for GS Paper 1 and 2 (Social Issues and Vulnerable Sections).