NITI Aayog Report on Gig and Platform Economy

NITI Aayog recently published its report titled “India’s Booming Gig and Platform Economy”.

Key recommendations of the report

  • In its report, NITI Aayog has proposed fiscal incentives for companies, such as tax breaks or start-up grants.
  • It proposed to provide incentives for companies having one-third of their workforce people with disabilities and women.
  • This move was directed towards increasing participation of women in the gig economy.
  • NITI Aayog also recommended to extend social security measures like income support, insurance, paid sick leaves, and pension plans for people working on platform companies like Swiggy, Ola, Zomato, and Uber.

Female Labour Force Participation

In the report, NITI Aayog noted that female labour force participation in India has been oscillating between 16% to 23% in last few years. Similarly, persons with disabilities, who accounts for 2.11 to 10 per cent of population in India, have labour force participation rate of 36%. Participation of two demographic groups in India’s labour force has been low because of structural barriers including access to education and lack of skilling. Report further noted that, women are more likely to take up platform jobs, after completing their education and marriage.

NITI Aayog’s recommendations on gig economy

Fiscal incentives like start-up grants or tax-breaks may be provided for businesses providing livelihood opportunities where women accounts for 30 per cent of their workers. Report also recommended that, businesses have a higher share of women supervisors and managers in the organisation. As per report, firms adopt policies which offer retirement plans and benefits as well as other insurance cover for contingencies injury.

Social Security Benefits

NITI Aayog’s report notes that, social security benefits be extended to workers in partnership mode, in accordance with Code on Social Security, 2020. Thus, businesses should consider providing income support for workers because it will be a significant step in providing assured social security and minimum earnings.

Workforce engaged in gig economy

As per NITI Aayog’s estimate, over 7.5 million workers were engaged in gig economy in 2020-21. This could increase to 23.5 million workers in next eight years, accounting for 4.1 per cent of total livelihood in India.


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