India’s gig economy surges, but 40% earn below Rs 15,000 per month: Economic Survey

India’s gig economy has expanded rapidly over the past four to five years, but income volatility remains a key concern, with about 40% of workers earning less than Rs 15,000 a month, the Economic Survey 2025-26 said.

The number of gig workers rose 55% to 1.2 crore in FY25 from 77 lakh in FY21, driven by rising smartphone adoption and the spread of digital payments. The sector now accounts for over 2% of India’s total workforce and is growing faster than overall employment.

Ecommerce employs the largest share of gig workers, followed by logistics and banking, financial services and insurance (BFSI), the Survey said.


"Platform algorithms control work allocation, performance monitoring, wages, and supply-demand matching, raising concerns about algorithmic biases and burnout,” the Survey added.

Calling for policy intervention via stronger competition rules and algorithmic transparency, the annual report said that the concentration of power with digital platforms providing gig work has raised concerns around fees, algorithm-driven decision-making and worker protections.

The Survey also said policy should seek to narrow the cost gap between regular and gig employment by limiting incentives to bypass mandatory benefits and by introducing minimum per-hour or per-task earnings, including for waiting time.

Such measures, it said, could encourage formal hiring and improve incomes for low- and medium-skilled gig workers.

“About 40% of gig workers report earnings below Rs 15,000 per month. Limited skilling and fears of job losses due to technological advances such as artificial intelligence (AI) and machine learning (ML) add to worker vulnerability," the Survey added. Income volatility has also restricted access to formal credit, with financial inclusion among gig workers lagging behind, it noted.

The Economic Survey’s comments come in the backdrop of renewed debate over working conditions in the sector, following a strike by food delivery and quick commerce workers on December 31, one of the busiest days for platforms. Worker unions had called for protests demanding better pay and improved working conditions.

According to the Survey, the gig economy, spanning delivery services, ride-hailing and freelancing, has seen structural growth, integrating informal work into organised digital ecosystems. It said gig workers now account for over 2% of India’s total workforce, with their numbers growing faster than overall employment. Non-agricultural gig jobs are projected to make up 6.7% of the workforce by 2029-30 and contribute Rs 2.35 lakh crore to GDP.