Gig Economy: Is it a blessing in disguise for India’s Startup Industry?
“The tally of gig workers is likely to rise with more companies transforming their operations to become more technologically focussed. With increasing use of technology, such as artificial intelligence (A.I.) as a result of digitization and automation, new work profiles will emerge, as well as the need for businesses to recruit skilled personnel. Companies will be able to reach out to talent on a project-by-project basis in the coming years, rather than recruiting outright for such roles”.
Source-ASSOCHAM report, January 2021
(The Associated Chambers of Commerce and Industry)
In India, the gig economy is rapidly expanding in the labour market. Startup entrepreneurs benefit from the gig economy because they can accommodate temporary workers based on consumer demands or company needs, saving money on administrative and enforcement costs. The gig economy is the term used to describe the economy of the Modern world. India’s ongoing digital transformation relies heavily on the gig economy. This new age economy has made significant progress, particularly in the post-COVID era. According to recent projections, India’s economy will hire 6 million people by 2021. India accounts for roughly 40% of all freelance workers available worldwide.
Amazon, Grub Hub, Airbnb, Ola, Swiggy, Uber, Lyft, Zomato, UpWork, Postmates, and Door Dash are just a few examples of common gig employers. According to statistics, 97 percent of Indians are willing to work on a freelance, temporary, or contract basis.
What is Gig Economy?
The gig economy is a decentralized work mechanism focused on temporary job positions and short-term contracts between businesses and individuals. People may participate in it in a variety of ways, including freelancers, independent contractors, and part-time employees.
This method benefits all parties: Entrepreneurs may choose from a larger pool of talent to find the ideal candidate for a specific project. Staff, on the other hand, have the option of selecting projects and companies that suit their definition of a satisfactory work environment.
History of Gig Economy
In the 1920s, jazz musicians in America coined the term “gig.” It was a slang term for a concert. Nearly a decade ago, the term “gig economy” began to be used to describe such one-time jobs that are done under a fixed contract, especially in the United States.
What is the status of India’s gig economy right now?
- According to the ASSCHOM, India, India’s gig economy will be worth $455 billion by 2022, making it one of the fastest-growing segments of the economy with a 17 percent annual growth rate.
- The unstructured sector employs about 81 percent of India’s workforce and accounts for nearly 50 percent of the country’s GDP.
- Gig platforms were responsible for 56 percent of new jobs in India during the recent Pandemic.
- The Government of India’s recent move to collect data on gig economy workers is a positive first step toward developing a legislative structure to ensure gig workers’ social security.
Is it a blessing in disguise?
Recently, the global economy has been hit hard by the Corona outbreak, but the gig economy has turned out to be a blessing in disguise for the world. Technology, in combination with globalization, has been critical in bringing the world closer together and bridging the divide among people. A hyper-connected society has changed the manner individuals raise, invest, and spend money over the last two decades. Freelance work has reached a tipping point in the Fourth Industrial Revolution and is today regarded as an evolving force.
To summarise, the gig economy has undoubtedly transformed India’s work culture, allowing for greater flexibility and freedom while displacing the conventional employer-employee relationship. The potential benefits of this in a developing country like India for Startup Industries are immense. It will be a significant step toward professional and financial empowerment for women, as it will provide them with the flexibility they ought to achieve their work-life balance.
Workplaces are evolving, and so is how people work. When more companies and workers gravitate toward independent work dynamics, the gig economy’s future holds infinite possibilities. It won’t be long before the gig economy replaces full-time employment as the norm. So it is correct to say the sky is the limit for the gig economy!
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