India’s gig economy has seen a sharp rise over the past five years. According to various news reports, there are approximately 12 million gig workers as of FY 2024–25, up from 7.7 million in 2020–21, now comprising over 2% of the total workforce. This growth—at a compound annual rate of about 17% and a 38% year-on-year surge in FY 2024–25—has been fuelled by digital connectivity, rapid urbanisation, and a cultural shift toward more flexible work arrangements. However, this shift is more than a trend; it marks a structural transformation in India’s labour economy.
Who counts as a gig worker today?
Let’s begin by redefining what it means to be a gig worker. Contrary to popular belief, gig workers aren’t just young people doing trendy or flexible jobs. They are anyone engaged in income-generating work without the security and benefits of formal employment. Today’s gig workers include men and women engaged with cab aggregators and food delivery apps, offering services such as home cleaning, grooming, delivery, and rides. While these workers do not enjoy the full suite of formal employment benefits, they now operate in an ecosystem that brings some structure and recognition to their labour.
Previously, such work—carpenters, electricians, or domestic help—was entirely informal. Jobs were unrecorded, payments were made in cash, and wages were negotiable, often dictated by the person hiring. Today, digital platforms have introduced a structured framework: tasks are logged, skill profiles are maintained, and payment is credited through formal channels.
Rate cards are fixed by category and specialisation, making pricing more transparent and fair. This formalisation is pulling a large segment of unorganised wage workers into a semi-structured system, generating measurable employment and income. As a result, gig workers now have a documented income trail, an important shift from the cash economy, making them visible to the formal financial system.
This transformation has far-reaching consequences. Earlier, gig workers who needed credit facilities relied heavily on informal sources like moneylenders, friends, or employers, often leading to debt traps, unpaid labour, or exploitative interest rates. Now, with their income digitised and documented, they are eligible for formal credit, often for the first time, and on reasonable terms. However, this financial inclusion is still evolving.
Credit scoring and lending policies are yet to be redesigned to reflect the unique income patterns of gig workers. Most gig workers, especially younger individuals entering the workforce, remain new to the formal credit ecosystem. As “thin-file” or “no-file” borrowers, they are often excluded from conventional credit scoring models that rely on steady, salaried incomes.
To enable deeper financial inclusion, more needs to be done to help gig workers enter the mainstream lending fold. This segment is growing—ranging from working capital loans for purchasing tools to long-term credit aimed at building assets or upgrading skills. As more individuals—including Gen Z, Gen Alpha, some millennials, and even retirees—embrace gig work, its growing role in employment and economic participation underscores the urgent need for inclusive, tailored financial solutions.
New credit models and digital tools are reshaping lending
New approaches are beginning to bridge this gap. Alternative credit scoring models that use platform data—such as ride ratings, earnings consistency, or the number of completed gigs—are helping lenders better assess a gig worker’s financial reliability. Embedded finance, offered directly through gig platforms, is enabling access to micro-loans and salary advances, while digital lending platforms are tapping into behavioural and transactional data to design more responsive underwriting models.
Additionally, Account Aggregators (AAs) under India’s Digital Public Infrastructure framework are emerging as a critical enabler, helping gig workers securely share their digital financial footprint, such as income flows across wallets and bank accounts, with lenders. This consent-based data-sharing can significantly improve credit visibility, strengthen underwriting, and support the design of more nuanced, gig-friendly financial products.
What lies ahead
Looking ahead, projections estimate that India’s gig workforce will rise to 23.5 million by 2029–30, accounting for 6.7% of the non-agricultural work force and contributing approximately 1.25% to GDP, according to the Economic Survey. Over the longer term, the sector could generate up to 90 million jobs. As the space matures, there’s visible growth in white-collar freelancers and rising participation by women.
But challenges remain—income volatility, limited access to social security, and safety concerns are still significant barriers. For India’s gig economy to achieve its full potential, parallel progress is needed in labour rights, financial product design, and digital inclusion to ensure that this evolving workforce not only contributes to economic growth but also benefits equitably from it.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, legal, or professional advice. While every effort has been made to ensure accuracy, readers should verify details independently and consult relevant professionals before making financial decisions. The views expressed are based on current industry trends and regulatory frameworks, which may change over time. Neither the author nor the publisher is responsible for any decisions based on this content.
Sachin Seth, Chairman CRIF High Mark and Regional MD CRIF India & South Asia