Activism in India’s Gig Economy: Balancing growth and workers' rights

It is crucial for the Indian government to take steps to mitigate these effects while ensuring the continued growth of the gig economy.

The gig economy in India has rapidly evolved in recent years, driven by the expansion of online service platforms and collaborations with MSMEs. Currently the fifth-largest gig workforce globally, the number of gig workers in India is expected to an estimated 200% by 2030 when the gig economy is projected to contribute 2.5% of India’s GDP. This growth is largely fuelled by companies like Zepto, Amazon, Flipkart, Uber, Ola, Zomato, Swiggy and Urban Company which offer flexible, on-demand work opportunities for gig workers. The gig economy has become a crucial driver of job creation and income generation, especially for low skilled workers, while offering workers the flexibility of choosing their working hours and effort-linked wages. Additionally, the companies offer gig workers trainings to enhance their professional skills and career prospects. This is the positive role that the gig economy plays in employment and skill development which is woefully needed in India.

The rapid growth of the gig economy has raised concerns about workers’ rights, working conditions, legal protections and the long-term sustainability of the sector. With India’s gig workforce expected to grow to 23.5 million by 2030, it is critical to address the well-being of these workers. However, this should be done through positive interventions. On the other hand, activist groups and labour organisations have raised alarms about the norms stipulated by respective state governments on lack of adequate minimum wages, nature of gig work, lack of benefits, and work environment.

It should be debated on who is impacted when organisations like The Gig and Platform Services Workers Union (GIPSWU) call out to gig workers to switch off their phones and go on ‘digital silence’ on Deepavali or Amazon Indian Workers Association campaigns. The platform companies would argue that they follow the norms set by the government while activists would demand for more.

While the need for workers' rights is undeniable, it is essential that activism remains balanced, solution-oriented, and mindful of the broader economic impact. Misguided or disruptive activism can have far-reaching economic repercussions, including:

- Loss of Trust in Gig Platforms

Excessive criticism or operational disruptions can erode trust of customers in the platform companies. If customers lose faith in these platforms due to disruptions or believe that the practices are inappropriate, they may stop using them, destabilising the entire gig economy and earning opportunities for gig workers. As trust diminishes, companies may struggle to retain workers, leading to a reduction in available services and job opportunities. The organisations leading the demands may or may not get impacted by these disruptions but workers’ livelihoods will definitely get impacted.

- Reduced Opportunities for Gig Workers

Many gig workers, particularly in rural and underserved urban areas, rely on these platforms for their livelihood. Protests or disruptions can lead to a reduction in job availability or force platforms to scale back operations. For example, food delivery services like Swiggy and Zomato may face delays, reducing opportunities for workers who depend on a steady stream of gigs. This can have serious consequences for workers who rely on these platforms for daily income.

- Impact on Small and Medium-Sized Enterprises (MSMEs)

Small and medium-sized enterprises (MSMEs) play a key role in India’s economy and often rely on platforms like Ebay and Amazon for market access and distribution. Disruptions to these platforms can significantly impact MSMEs, leading to lost sales, delayed shipments, and increased operational costs. As MSMEs account for a significant portion of employment in India, disruptions in the gig economy could have broader economic consequences.

- Scrutinising Activism Campaign Funding

The gig economy has attracted substantial investment from both foreign and domestic investors and companies. Similarly, some of these activist organisations seem to be funded by sources fighting for causes that are aping the west and not be relevant to India. Their deep funding of activist organisations allows them to mount disruptive actions which can erode the confidence of investors.

Mitigating the Impact: A Collaborative Approach

Given the economic costs of disruptive activism, it is crucial for the Indian government to take steps to mitigate these effects while ensuring the continued growth of the gig economy. The government must recognise that large companies like Zepto, Flipkart, Amazon, Zomato, Ola and Uber operating in the gig economy are integral to India’s economic ecosystem. At the same time, it is essential to safeguard workers' rights and ensure that they receive fair compensation and benefits.

One of the most effective ways to address these challenges is through collaboration between the government, businesses, workers and institutions. The government can play a pivotal role in creating regulatory frameworks that balance the protection of workers’ rights with the need for businesses to remain competitive. These frameworks should involve input from all stakeholders, ensuring that the needs of each group are addressed without stifling the growth of the sector. Facilitating open dialogue between businesses, workers and activists can help resolve grievances and find solutions without resorting to disruptive tactics. Such dialogue ensures that activism remains focused on constructive change, rather than creating instability. Additionally, the government should work toward establishing robust legal frameworks to protect gig workers without hindering the sector's growth. This includes scrutinizing foreign-funded campaigns to ensure that they do not disrupt India’s domestic industries or destabilise the gig economy. By regulating external influence, the government can prevent vested interests from creating unnecessary instability.

Ensuring a Sustainable Future

As India’s gig economy continues to grow, collaborative efforts between the government, businesses, and workers will be critical in shaping a sustainable and equitable future. The gig economy offers tremendous potential for job creation, economic growth, and innovation, but it also requires careful management to protect workers and ensure its long-term stability. Through collaboration and a balanced regulatory approach, India can create a gig economy that provides fair opportunities for workers while enabling businesses to thrive. By fostering an environment of open dialogue and cooperation, the country can lead the way in developing a gig economy that is both inclusive and resilient, benefitting workers, businesses, and the broader economy.