In the Union Budget 2025, presented on February 1, Finance Minister Nirmala Sitharaman introduced a groundbreaking initiative aimed at supporting India’s gig workforce. Recognizing the significant contributions of gig workers to the country’s economy, the government has proposed issuing identity cards and facilitating their registration. Additionally, gig workers will be provided with healthcare coverage under the Pradhan Mantri Jan Arogya Yojana (PM-JAY).
This move is expected to benefit over one crore gig workers across various sectors, including food delivery, ride-hailing, e-commerce, and logistics. The initiative aims to bring them under a formalized system, ensuring they have access to essential social security benefits.
The Growing Gig Economy in India
India’s gig economy has witnessed an exponential rise in recent years, driven by the expansion of digital platforms such as Zomato, Swiggy, Blinkit, Uber, Ola, Amazon, and Flipkart. These platforms rely heavily on gig workers for last-mile deliveries, customer service, and transportation. With rapid urbanization and increasing consumer demand for quick services, companies have expanded their workforce, making gig employment an integral part of the modern economy.
A report by NITI Aayog previously estimated that India had around 7.7 million gig workers in 2020-21, and this number is expected to grow significantly by 2030. However, despite their crucial role, gig workers have remained outside the ambit of traditional labor laws, lacking essential benefits such as health insurance, job security, and social welfare.
Identity Cards and Social Security Benefits
The issuance of identity cards to gig workers is a step toward recognizing them as part of the formal workforce. These identity cards will help in maintaining a database of gig workers, which can be utilized for future policymaking, welfare programs, and labor rights enforcement. The registration process will also allow gig workers to access various government schemes designed to provide financial security and social protection.
One of the biggest challenges gig workers face is the absence of social security. Unlike traditional employees, they do not receive health benefits, retirement savings, or paid leaves. By extending healthcare coverage through PM-JAY, the government is taking a significant step toward improving their well-being. Under this scheme, eligible beneficiaries receive free health insurance coverage of up to ₹5 lakh per family per year for secondary and tertiary care hospitalization.
Industry Reactions and Future Implications
The move has been widely appreciated by industry leaders, labor unions, and economic experts. Many believe that the formalization of gig workers will improve their working conditions, enhance productivity, and contribute to a more stable economy.
Jaideep Kewalramani, COO and head of the employability business at TeamLease Edtech, remarked that integrating gig workers into the social security framework is a positive development. He emphasized that identity cards and healthcare support would provide much-needed stability and recognition to millions of workers who currently operate in an unstructured environment.
Additionally, companies in the gig economy are expected to collaborate with the government to ensure smooth implementation. Industry stakeholders believe that the initiative will create a fair and competitive work environment, enabling gig workers to receive benefits similar to full-time employees.
Conclusion
The government’s decision to introduce identity cards and healthcare benefits for gig workers marks a crucial step toward formalizing India’s gig economy. As the workforce continues to expand, such initiatives will play a pivotal role in providing stability, security, and dignity to millions of workers.
With rapid technological advancements and changing work dynamics, policies like these will be essential in ensuring that the gig workforce remains protected and empowered. The success of this initiative will depend on effective implementation, industry cooperation, and continued government support in creating a sustainable future for gig workers in India.
