Economic Survey flags income volatility, credit gaps for India’s gig workers

India’s fast-growing gig economy is creating jobs at scale, but workers continue to face unstable incomes, weak access to formal credit and rising risks from algorithm-driven platforms, according to the Economic Survey 2025–26.

While the sector is expanding rapidly, the survey said that ‘income volatility persists, leading to challenges in accessing credit.’ Most gig workers remain financially invisible to lenders due to ‘thin file’ credit histories, even as platform aggregators have introduced some changes to improve onboarding and payments.

India’s gig economy has grown from 7.7 million workers in fiscal year 2021 (FY21) to 12 million in FY25, a 55% jump in the last four years. The gig workforce now accounts for over 2% of the country’s total workforce and is likely to grow to 6.7% of the non-agricultural workforce by 2029–30, according to the survey.

Among the total gig workforce, e-commerce and logistics remain the largest employers, engaging about 3.7 million and 1.5 million workers, respectively. The Survey also points to sharp skill-based segmentation within the sector, estimating that by 2030, high-skilled workers will make up 27.5% of the gig workforce, while low-skilled workers will account for around 33.8%.

“This is what we have been fighting for, how gig workers face income volatility, algorithmic control, and limited financial inclusion, stronger labour protections are no longer optional they are urgent,” said Shaik Salauddin, co-founder and national general secretary Indian Federation of App Based Transport Workers (Ifat) and founder president, Telangana Gig and Platform Workers Union (TGPWU).

Vulnerabilities

The survey noted that gig workers typically lack conventional proof of income, making it difficult for banks and non-banking financial companies (NBFCs) to assess their creditworthiness, nudging them towards informal borrowing or short-term loans at higher costs.

Beyond financial vulnerability, the survey highlighted growing concern about platform governance. Digital platforms increasingly use algorithms to control work allocation, performance monitoring, wages and supply-demand matching. This heavy reliance on automated systems raises risks of algorithmic bias, opaque decision-making and limited worker agency.

The survey also flagged burnout as an emerging issue, driven by unpredictable earnings, long working hours and constant performance tracking through apps.

The concerns raised in the latest Economic Survey come on the back of growing unrest among gig workers and union leaders, following a nationwide strike call against Swiggy and Zomato on New Year’s Eve that fizzled out as many riders chose to work amid festival incentives.

Platforms rolled out peak-hour payouts and temporary relaxations, helping them deliver record orders, but workers said the bonuses masked a deeper earnings squeeze, with base pay for food and grocery deliveries falling from about ₹60 per order earlier this year to nearly ₹15 now.

Gig worker unions argued that incentives offer only short-term relief while systemic issues persist, including shrinking payouts, unsafe delivery targets, arbitrary penalties and lack of social security.

Approximately 40% of gig workers earn less than ₹15,000 per month, and income volatility makes it difficult for them to access credit, according to the survey.

Nirmal Gorana, national coordinator of the Gig and Platform Service Workers’ Union, said gig workers’ earnings are often below minimum wage standards and called for the government to extend minimum wage protection to platform workers. He said that many riders are being pushed into conditions that increasingly resemble forced labour, as falling payouts and algorithm-driven targets leave them with little choice but to work longer hours.

“Gig workers are left hanging. There is no social security from the old system, and even the new ones don’t adequately cover us. I hope the Budget makes accommodation for all of this,” he said.

Eternal Ltd, parent company of food delivery platform Zomato, in its Q3 FY26 shareholder letter, said that the government’s new social security code, while mandating digital platforms to contribute towards such benefits, is not expected to have any material impact on the company’s financials.

The firm noted that it will continue to monitor details such as gratuity, leave encashment, and other aspects, but does not foresee a significant effect on its business or profitability. It added that the social security framework is designed to benefit delivery partners and the broader gig economy, while potentially encouraging a larger proportion of India’s workforce to participate in organised employment.