Why are Millions of Indians Choosing Gigs Over Permanent Jobs?

The Indian labour force is quietly moving away from permanent jobs. No longer is the 9-to-5 corporate office job the only benchmark for employment. Work now is being redefined, unbundled and democratised. As the great Abraham Lincoln once said, “The best way to predict the future is to create it.” India is shaping its own future of employment – one that is centered around the gig economy.

What was once a stopgap or side hustle is now a viable and even coveted career path. More than 12 million Indians are now employed in gig jobs by FY25, making up over 2% of the country’s workforce. The number is projected to increase to 23.5 million by 2029 – 30, a permanent fixture rather than a flash in the pan. Just as the smartphone revolutionized communication, the gig economy is changing the way we think about and seek out jobs.

This shift is deeply rooted in changing aspirations. Earlier generations prioritised job security and traditional permanent jobs, but today’s youth, particularly Gen Z and millennials, value flexibility, autonomy, and work-life balance. Gig roles cater precisely to these evolving preferences.

Notably, the change is not just for city professionals. In cities such as Bhopal, Patna, and Coimbatore, even gig platforms are offering employment for delivery agents, warehouse attendants, and logistics operatives – some of whom had no jobs earlier. The pandemic would have certainly speeded up the change, but the ongoing usefulness of the gig model is what keeps it going.

Business-wise, gig employment provides responsiveness and flexibility. Online shopping and fast commerce businesses, as an instance, depend on the gig workforce to deliver the growing volume of fast deliveries and smooth service. The gig workforce is the backbone of the last-mile delivery and warehousing, complemented by AI-backed tools for predicting demand and logistics optimisation. Essentially, gig workers are enabling businesses to scale efficiently even in outlying geographies.

Despite its benefits, gig employment does come with challenges. Workers often lack access to basic social security such as health insurance, paid leave, and pension. Take Suresh, a 32-year-old delivery executive in Delhi, for instance. After a road accident left him unable to work for two weeks, the absence of protection left his family struggling. His case highlights the importance of extending support even to those outside traditional permanent jobs.

Acknowledging such challenges, the government has made strong strides. The Code on Social Security, 2020, seeks to include the gig workers within the fold of formal protection. The Union Budget FY26 had provided ₹32,646 crore to the Labour & Employment Ministry, out of which ₹20,000 crore was set aside for the Employment-Linked Incentive (ELI) programme. Moreover, the gig workers now also get health insurance under PM Jan Arogya Yojana, with a coverage of ₹5 lakhs per family every year. The e-Shram portal with simplified enrolment and a unique ID system further reinforces inclusion.

What is unique to the gig economy is the manner in which it democratizes employment. With a smartphone and basic digital literacy, anyone – independent of education, geography, or background – can be included in the workforce. For women, semi-skilled youth, older adults, and people with impairments, this possesses great transformative power.

To realise this promise however, something more than policy is needed. More than that, though, is also needed. Instead, employers need to take a more human approach, committing the necessary investment in digital skills, portable benefits, and sustainable careers.

With India’s progression towards a multi-trillion-dollar economy, gig employment is not something for the future – it is the reality now. And it is increasingly shaping inclusive, resilient employment across the country.

Disclaimer: This article was first published in Hindustan Times.