The term ‘gig economy’ is buzzing around worldwide. People are increasingly drawn to this gig model, where they can choose their hours and projects rather than being tied to a traditional ‘9 to 5 job. But what exactly is the gig economy? Who are the gig workers? And what are the reasons for its growing popularity? Let’s explore these questions and be inspired by the gig economy’s empowerment.
Let’s explore the Gig economy in India in this blog.
What is the Gig Economy?
The Gig economy is a free market system in which individuals can take short-term assignments or “gigs” from various clients or companies. You can highlight the term as a freelancers’ market or flexible workforce environment that describes short-term employment, contractual jobs, independent contracts, etc.
In this economy, workers work simultaneously with various industries, providing services ranging from creative work to technical tasks to manual labour and service-oriented roles. In the gig economy in India, gig workers are about 7.7 millennia right now, and it is expected to be 23.5 by 2029-2030.
Who are the Gig Workers?
Gig workers are freelancers or independent contractors who work in dynamic and flexible work environments on a temporary or contractual basis. They can work for more than one company simultaneously. Nowadays, many employees choose the gig economy as the source of their secondary income.
This Gig workers group includes many freelancers offering skills like writing and graphic design, ride-sharing drivers, task-based workers providing services like home cleaning, and consultants contributing specialized expertise.
A History of the Gig Economy
The Gig Economy has evolved for several decades due to updated technology, the economy, and work culture. Yet the term “gig economy” gained prominence in recent years during the pandemic.
In 2018 and 2019, people started to focus on freelancing, which became their second income. Many platforms like Upwork, TaskRabbit, and Fiverr provide gig workers with a wide array of services.
The value of the Gig Economy became more highlighted during the COVID-19 pandemic. The pandemic highlighted the gig economy’s resilience and adaptability. Many workers turned to gig platforms for income during economic uncertainties, and remote work became more commonplace.
Benefits of the Gig Economy
The gig economy presents various benefits for workers and businesses, contributing to a more flexible and dynamic labour market. Here are some key advantages of the gig economy.
1. Faster Skill Development
Depending upon the nature of your work, it is essential to improve the skill simultaneously. For example, if you are a freelance content writer and think about taking this gig work as the source of primary income, then you should have good copywriting and proofreading ability. On the other hand, if a person chooses outdoor gig work like delivering food outside, you may also improve your communication, time-management, and customer service abilities.
2. Proper Timings
The gig economy is time-dependable. Though you can work flexibly in a Gig atmosphere, you should remember that your task schedules don’t overlap. Working in a Gig atmosphere is often so comfortable that individuals balance work and life. Gig workers can quickly work in their free time while managing home responsibilities, which might be difficult for a regular job. Companies arrange shift management software and related tools for tracking their combined work schedule.
3. Job Selection
Often, people get confused about choosing a career goal. Additionally, once they take responsibility in a regular full-time job, they must manage within an estimated timeline. But in a gig atmosphere, one can take on any task and responsibilities that he can manage. Moreover, there is an option he can decline at any time that doesn’t appeal to his interest, time, and energy.
4. Financial Freedom
The flexibility inherent in gig work allows workers to diversify their income streams, take on multiple projects, and pursue opportunities that align with their financial goals. Gig workers have the autonomy to set their rates, manage their time, and explore various income-generating avenues, contributing to increased economic independence.
Additionally, the entrepreneurial nature of gig work encourages individuals to invest in their skills, build a personal brand, and strategically navigate the dynamic job market, potentially leading to higher earning potential.
While the gig economy presents opportunities for financial freedom, it also requires careful financial planning, disciplined budgeting, and considerations for fluctuating income and the absence of traditional employment benefits. Numerous payroll management systems and relevant payroll software help gig workers in finance management and solutions.
5. Balance Work and Life Duties
The gig economy provides a unique opportunity for individuals to balance work and life duties by offering a high degree of flexibility in how and when they work. Gig workers can tailor their schedules to accommodate personal commitments, family responsibilities, and other aspects of life, allowing for a more harmonious integration of work and personal life.
This flexibility empowers individuals to take control of their time, promoting a work-life balance that suits their individual needs.
However, it also requires self-discipline to manage workloads effectively and establish clear boundaries between work and personal life. While achieving this balance between work and life can be challenging, the gig economy ensures flexibility that offers a valuable option for individuals seeking greater control over their professional and personal responsibilities.
Who Works as Gig Workers?
In India, a few specific groups have started to build careers as Gig workers. Some intend to explore the work types and variations, and some are curious about making money through random rapid freelancing. Let’s see who works in the Gig economy.
➔ Young Tech Gig
Young Tech Gig loves to work in the Gig economy. In the first stage of their career, they like to explore things, and then they have time to jump into multiple works. There is a large and growing population of young workers in India, and they are well-educated and tech-savvy as well. On the other hand, organizations require experts in online collaboration tools and other on-demand processes like s coding, graphic design, digital marketing, and content creation.
The combination of organizations’ requirements and the skill set of young workers creates the right blending and enhances India’s gig economy. Nowadays, The gig economy allows tech-savvy individuals to leverage their expertise on platforms like Upwork, Fiverr, or freelance coding sites, offering services to a global clientele. The flexibility and autonomy inherent in gig work align with the preferences of many young tech professionals, enabling them to choose projects that align with their interests, work on their terms, and continuously enhance their skills in a rapidly evolving digital landscape.
➔ Independent workers
Independent workers in India choose the gig economy by their choice. Freelancers, consultants, and entrepreneurs have the specialized skills to work with two or more companies simultaneously. They get paid hourly or based on tasks/ responsibilities.
Moreover, Independent workers use social media platforms and numerous other service-offering platforms like Upwork, Fiverr, or direct client engagement as income pathways. The gig economy allows these individuals to set their schedules, negotiate rates, and choose projects that align with their professional goals and personal interests.
For those who value independence, variety in their work, and the ability to control their professional trajectory, the gig economy is a dynamic and empowering space where independent workers can thrive.
➔ Consultant
Often, organizations need experts’ views for particular work. In that scenario, the gig economy provides an opportunity for experts to leverage their specialized knowledge to offer targeted services to clients on a project-by-project basis. This allows them to take on diverse challenges, work with various clients, and continuously expand their skill set.
The gig model enables consultants to maintain autonomy over their schedules, select projects aligned with their areas of expertise, and build a reputation as experts in their field. This flexibility and entrepreneurial freedom make the gig economy an ideal space for consultants to thrive, offering tailored solutions to clients while enjoying the benefits of varied and dynamic work experiences.
➔ Delivery Drivers
The delivery driver is pretty different from the upper sections. However, most delivery partners and taxi drivers use the gig economy for their primary earnings. Numerous sites like Zomato, Swiggy, Uber Eats, Instamart, and others require delivery partners for their business. Individuals interested in working in the job type with the gig work atmosphere can get an opportunity-seeking part-time or supplementary income, as well as those who may have other commitments.
It offers delivery drivers the autonomy to navigate their local areas efficiently, providing delivery services for food, groceries, or other goods. This model not only caters to the drivers’ preferences but also meets the on-demand needs of consumers.
➔ House-wives
In India, there are some conditions where women have to be busy with household staff, and they don’t have the choice to work from the office. Moreover, during motherhood, women can’t work outside for hours.
In that scenario, the gig economy is one of the most suitable options for them. A suitable gig atmosphere allows housewives to leverage their skills and interests on their terms, accommodating family responsibilities.
Platforms like Naukri, Indeed, Monster, and TaskRabbit, where women can offer and hire various services. Besides that platform, freelance platforms like Upwork and Fiverr provide opportunities for them to contribute their talents in virtual assistance, writing, graphic design, or even home-based services.
Thus, the gig economy serves as a platform for housewives to provide security, contribute to the workforce, gain financial independence, and engage in meaningful work while still prioritizing their roles within the home.
Challenges of the Gig economy in India
In India’s working strategies, numerous gig workers and individual consultants work online or offline worldwide. One of the main challenges they face is dealing with fraudulent activity. Many individuals face challenges in collecting their income or remain underpaid. Let’s overview the challenges faced in the gig economy india.
The gig economy in India, characterized by short-term and freelance work arrangements, has grown significantly in recent years. While it offers flexibility and opportunities for income generation, there are several challenges associated with the gig economy india.
1. Job Insecurity and Social Protection
Though handling multiple work responsibilities and getting paid a huge amount is fun, there is a risk of security every second up to the end of the deal. Often, workers lose their money due to fraudulent activity, and they start to live life without a stable job and a regular paycheck.
A lack of job security can often lead to anxiety and uncertainty among gig workers, who become thoughtful about their future income and financial stability.
Moreover, they are excluded from various benefits in this gig atmosphere, such as health insurance, retirement benefits, or paid leave. Besides, they face challenges during times of illness or emergencies.
2. Low Wages and Income Inequality
In this gig economy, workers remain unaware of their monthly income. They may get huge this month but achieve nothing next to next month. Though it is an okay, pretty good plan as working as a gig worker in a career starts, it is risky for the entire life of earning.
Many gig workers in India face low wages, with some platforms engaging in price wars that can drive earnings down. Income inequality may also arise as specific skills or services command higher pay than others.
3. Work-life Balance
In a regular working lifestyle, Individuals have limited work hours. But in a Gig work atmosphere, they have to work 24* 7 to achieve multiple targets. This blurs the boundaries between work and personal life. Gig workers may find maintaining a healthy work-life balance challenging, leading to burnout and stress.
4. Limited Growth Opportunities
When working in a company, you may have numerous opportunities to gain knowledge from colleagues, seniors, or management. However, in the gig economy, individuals have to update themselves constantly; they don’t have the scope for learning from traditional employment. Thus, skill development, training, and progression in their chosen fields become tougher for them.
5. Digital Divide
Access to technology and the internet is crucial for gig workers, but a digital divide exists in India. Some workers may not have access to the necessary tools, infrastructure, or skills to participate effectively in the gig economy. Often, they have to spend an extra amount on unnecessary courses that meet a particular requirement.
Essential Skills for the Gig Workers
Gig workers are seasonal employees who work in dynamic and flexible work environments on a temporary or contractual basis. They should have some essential skills before jumping into the gig economy.
➔ Research Before Commencement
Often, Gig workers jump into random projects without researching work elements and other terms and conditions. Understanding the client project and its terms and conditions, such as timeline and payment conditions, is essential before the project commences.
The research should encompass the client’s expectations, market trends, and required skills and tools. It not only allows gig workers to tailor their approach to effectively meet client needs but also helps set realistic timelines and expectations.
In the gig economy, where projects can vary widely, being well-informed before the commencement of work enhances the gig worker’s ability to provide value, build a positive reputation, and foster long-term professional relationships.
➔ Beware of Potential Cost
When people work for a company, they get numerous add-on benefits like tool subscriptions, zero-cost training sessions, free courses, etc. In the Gig economy, individuals have to consider not only direct work-related expenses like equipment and software but also indirect costs such as taxes, healthcare, and retirement savings that gig workers often manage independently.
A clear understanding of the financial implications of each gig helps in setting appropriate rates, budgeting effectively, and ensuring that the income earned aligns with both short-term needs and long-term financial goals. Being proactive in managing costs is vital to maintaining economic stability and maximizing the benefits of gig work.
➔ Budget for Taxes
In the Gig economy, Individuals work as freelancers. They are solely responsible for managing their taxes. Allocating a portion of earnings for taxes helps avoid financial strain when tax season arrives.
So it becomes essential for Gig workers to understand the tax implications of their earnings, including self-employment taxes, and to set aside funds regularly. This proactive approach ensures compliance with tax regulations and prevents unexpected tax burdens.
Seeking the guidance of a tax professional can provide valuable insights into deductions and credits available to gig workers, contributing to a more informed and strategic financial plan.
➔ Beware of Scam
In the gig economy, when there is no longer a work limitation, the chances of scams can be high. Being prepared to identify scams and pace them properly is a crucial step for gig workers.
Scams may include requests for sensitive information, vague job descriptions, or promises of unusually high pay. Verifying clients’ credibility and using secure payment methods are essential precautions.
Staying informed about common scams and trusting one’s instincts can help gig workers avoid falling victim to fraudulent schemes, ensuring a secure and positive experience in the gig economy.
➔ Avoid the Burnout Symptoms
Many individuals pursue multiple projects to earn huge money. The pursuit of those projects simultaneously can make individuals susceptible to burnout. They must prioritize setting realistic work boundaries, scheduling breaks, and taking time off between projects to recharge. Scheduling and arranging tasks are among the finest options for avoiding puzzling situations.
Regular self-assessment of workload and stress levels helps identify signs of burnout early on. Establishing a healthy work-life balance, incorporating self-care routines, and seeking support when needed contribute to sustained well-being in the dynamic and sometimes demanding gig economy.
Prioritizing mental and physical health is not only beneficial for the individual gig worker but also enhances the quality of work delivered to clients.
Updates for the Gig Economy in India
According to the report of NITI Aayog, gig workers are about 7.7 millennia right now, and the number is expected to expand by 23.5 million workers by 2029 -2030. The top-rated gig workers have been expanded within all sectors, though only 31% of gig workers are low-skilled, 22% are high-skilled, and the rest are medium-skilled.
According to the report, the number of women gig workers has been increasing rapidly in recent days. They are starting to love freelancing along with their household work.
