The gig economy in India is on the rise. As per a report published by a newspaper, gig economy is the core generator of the economy in India. Around 56% of new jobs have been created by the gig economy.
But before beginning let us know what is Gig Economy:
A gig economy is the one wherein companies hire people or freelancers for short term basis on the basis of the contract. Freelancers have a huge role to play in India’s Gig economy. With increasing work pressure in firms, freelancers are also on the rise.
METRO CITIES – a hub of gig economy?
Over the years our National Capital, Delhi along with cities like Bangalore, Hyderabad, Mumbai, and Chennai have turned as the freelancing hub for people. Many people tend to relocate to the city in search of jobs and most of them end up taking freelancing. While many are choosing to freelance, other food giants such as Zomato and Swiggy are picking up people on contract basis employment every other day. An increase in disposable income and the fast-moving life has paved a way for these food businesses to establish themselves at every possible corner of the country. This leads to a need for delivery boys who end up doing these gig economy jobs.
Even companies such as Rapido, Ola, Uber, and Meru offer jobs to the drivers who migrate at an alarming rate into metro cities from adjacent places. India contributes the most in terms of freelancers in the world. As per a report published in 2018, India contributes 50% in freelancing globally wherein a large number of freelancers are below the age of 40. Future of India largely depends upon gig economy mainly generated by freelancing. Internet speed, smartphone penetration, increase in disposable income are factors that give a push to gig economy in India. Also, the fact that freelancing is giving freedom from the 9-5 working pattern also the flexibility to the new generation.
Yet few other factors too largely contribute to gig economy of India:
- Startups: Our country is gradually turning into a business dominated economy. Make in India concept of the ruling government has also produced many start-ups. Since these startups have little money to spend on full-time in-office employees, they would rather hire freelancers to do their jobs. This saves their time as well as money.
- Role of MNCs: Multinational Companies also work on gig-economy culture. A large number of MNCs established in India tend to employ people working on contractual basis. This saves their money and time. Also provides them with high-quality work without training.
- Globalization comes into play: Globalisation has a large role to play in the gig economy too. With the book of interconnectedness today, people working as freelancers feel free to work at flexible hours including the night shift for any company across the globe.
- Rise of freelancing platforms: An increase in freelancing jobs has also given a boost to the gig economy of India. Startups and well-established business hire freelancers to get their jobs done while many people who love to work independently and all by themselves also take to freelancing which contributes largely to gig economy of India.
- Migration of a large number of popular in search of jobs- A large chunk of the population migrates from small towns to big cities in search of jobs. Due to stuff competition in the market, they tend to take up contractual jobs such as that of delivery boys or drivers. Thus this adds up to the gig economy of our country.
Well, all we can analyze is that India is adopting the gig economy faster than we realized. That is, for the good!