Economic Survey flags algorithmic bias, burnout risks for gig workers

The Survey noted that the gig workers have increased in the country rapidly in the last few years, jumping 55 percent from 77 lakh in FY21 to 1.2 crore in FY25

• Economic Survey finds 40% of gig workers earn less than Rs 15,000 per month
• Gig workforce grew 55% since FY21, now 2% of India's total workforce
• Survey reveals income volatility, algorithmic bias, and financial inclusion issues.

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The past few weeks have seen a heated discussion over the earnings and the working conditions of gig workers in India, with several data staffing agencies and online platforms defending the delivery model.

The Economic Survey, released on January 29, has now waded into the debate and shared its findings. According to the Survey, 40 percent of the total gig workers in the country earn less than Rs 15,000 per month, which is way below what several previous reports and company claims have said. The earning is also below the entry-level salary paid under the 7th Pay Commission.

Moreover, the Survey highlighted concerns of algorithmic biases and burnout. “Platform algorithms control work allocation, performance monitoring, wages, and supply-demand matching, raising concerns about algorithmic biases and burnout,” it said.

The Survey noted that the gig workers have increased in the country rapidly in the last few years, jumping 55 percent from 77 lakh in FY21 to 1.2 crore in FY25, representing 2 percent of India’s total workforce. The government document credited smartphone penetration and over 15 billion monthly UPI transactions for the growth in the number of gig workers.

Close to half of the gig workers at 52 lakh are employed by the e-commerce and logistics sectors. The Survey said the non-agricultural gigs are projected to make 6.7 percent of the workforce by 2029-30, contributing Rs 2.35 lakh crore to the gross domestic product.

The Survey pointed out several income and financial inclusion issues that still persist.

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“While the gig economy is booming, income volatility persists, leading to challenges in accessing credit. Financial inclusion also lags behind for gig workers. They have ‘thin-file’ credit access, which remains a concern,” the Survey said.

The gig economy’s rapid expansion offers unprecedented opportunities for revenue generation. However, the challenges need to be addressed to ensure equitable growth, the Survey noted.

The Survey said the recently implemented Labour Codes recognize gig and platform workers and provides various social security benefits.

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The gig workers debate

In the past few weeks, several critics had raised concerns over long-working hours and low salary of gig workers employed by several online platforms such as Zomato, Swiggy, Zepto and others.

Eternal’s chief executive officer Deepinder Goyal, set to retire as the group CEO next month, had publicly defended the delivery model of gig platforms, including Zomato and Blinkit.

In a post on X, Goyal had shared data on rider earnings and several other metrics to counter the allegations of unfair wages. According to Goyal, a gig worker working for 10 hours every day for 26 days would have a gross earning of Rs 26,500 and a net earning of Rs 21,000 after considering fuel and other costs.

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A Zomato delivery worker’s earnings per hour recorded a close to 11 percent hike to Rs 102 in 2025, according to Goyal’s data.

The debate over gig workers had escalated after the riders announced a nationwide strike on December 25 and 31, which the platforms claimed was not successful. Following the outrage, the Central government stepped in and asked delivery platforms to shelve the 10-min delivery promise.