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National Multidimensional Poverty Index (MPI)

Context

NITI Aayog has recently published the "National Multidimensional Poverty Index: A Progress Review 2023" report, asserting that a substantial portion of the population in India has successfully emerged from multidimensional poverty.

What is the National Multidimensional Poverty Index?

• The report has been prepared based on the latest National Family Health Survey-5 ( 2019-21 ) and is the 2^nd edition of the National Multidimensional Poverty Index (MPI).
  • The first edition of MPI was released in 2021.
• The Multidimensional Poverty Index (MPI) aims to assess poverty by considering its various dimensions, thereby serving as a valuable complement to conventional poverty metrics reliant on per capita consumption expenditure.
• It has three equally weighted dimensions – Health, Education, and Standard of living.
  • Twelve indicators, including nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts, represent the three dimensions in the Multidimensional Poverty Index.

What are the Key Highlights of the Report?

• Reduction in Multidimensional Poverty:
  • Between 2015-16 and 2019-21, India witnessed a significant decline in the number of multidimensionally poor individuals.
  • Around 13.5 crore people moved out of multidimensional poverty during this period.
• Decline in Poverty Percentage:
  • India's population living in multidimensional poverty decreased from 24.85% in 2015-16 to 14.96% in 2019-21, reflecting a decline of 9.89 % points.
• Rural-Urban Divide:
  • The rural areas of India experienced the fastest decline in poverty, with the poverty rate dropping from 32.59% to 19.28% between 2015-16 and 2019-21.
  • In urban areas, the poverty rate reduced from 8.65% to 5.27% during the same period.
• State-Level Progress:
  • In terms of number of MPI poor, Uttar Pradesh saw the largest decline in the number of poor individuals, with 3.43 crore (34.3 million) people escaping multidimensional poverty.
  • Bihar, Madhya Pradesh, Odisha, and Rajasthan have experienced notable advancements in alleviating multidimensional poverty.
  • Bihar saw the fastest reduction in MPI value in absolute terms with the proportion of multidimensional poor reducing from 51.89% to 33.76% in 2019-21 followed by Madhya Pradesh and Uttar Pradesh.
• SDG Target:
  • The MPI value for India has nearly halved from 0.117 to 0.066 between 2015-16 and 2019-21.
  • The severity of poverty has decreased from 47% to 44%, suggesting that India is making progress toward accomplishing Sustainable Development Goals (SDG) Target 1.2, aiming to reduce multidimensional poverty by at least 50%, ahead of the scheduled deadline of 2030.
• Improvement in Indicators:
  • All 12 indicators used to measure multidimensional poverty showed marked improvements.
  • The impact of Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) is evident in the swift 21.8% points improvement in sanitation deprivations.
  • The Poshan Abhiyan and Anaemia Mukt Bharat have contributed to reduced deprivations in health.
  • The implementation of the Pradhan Mantri Ujjwala Yojana (PMUY), offering subsidized cooking fuel, has brought about a significant positive change in people's lives, manifesting as a 14.6% enhancement in addressing cooking fuel shortages.

Goods and Services Tax (GST)

Context

The Goods and Services Tax (GST) is an all-encompassing indirect tax applicable to the production, sale, and usage of goods and services across India. It is designed to substitute the existing taxes imposed by both the central and state governments.

What is GST?

• It is a destination-based taxation system.
• It has been established by the 101^st Constitutional Amendment Act.
• It is an indirect tax for the whole country on the lines of “One Nation One Tax” to make India a unified market.
• It is a single tax on the supply of Goods and Services in its entire product cycle or life cycle i.e. from manufacturer to the consumer.
• It is calculated only in the “Value addition” at any stage of goods or services.
• The final consumer will pay only his part of the tax and not the entire supply chain which was the case earlier.
• There is a provision of the GST Council to decide upon any matter related to GST whose chairman in the finance minister of India.

What taxes at the centre and state level are incorporated into the GST?

At the State Level

• State Value Added Tax/Sales Tax
• Entertainment Tax (Other than the tax levied by the local bodies)
• Octroi and Entry Tax
• Purchase Tax
• Luxury Tax
• Taxes on lottery, betting, and gambling

At the Central level

• Central Excise Duty
• Additional Excise Duty
• Service Tax
• Additional Customs Duty (Countervailing Duty)
• Special Additional Duty of Customs

Timeline of GST

• 1986: Finance Minister Vishwanath Pratap Singh proposes a major overhaul of the excise taxation structure, bearing theoretical similarities to GST.
• 2000: The Vajpayee government initiates discussions on GST, forming an Empowered Committee led by West Bengal's Finance Minister Asim Gupta.
• 2004: Advisor to the Finance Ministry, Vijay Kelkar, recommends GST as a replacement for the existing tax regime.
• Feb 28, 2006: GST is mentioned in the Budget speech for the first time by Finance Minister Chidambaram, with an ambitious goal of implementation by April 1, 2010.
• Feb 28, 2007: Chidambaram announces in the Budget speech that the Empowered Committee of finance ministers will create a roadmap for GST.
• April 30, 2008: The Empowered Committee submits a report titled ‘A Model and Roadmap Goods and Services Tax (GST) in India’ to the government.
• Nov 10, 2009: The Empowered Committee releases a discussion paper on GST for public debate.
• Feb 2010: The government launches a project for the computerization of commercial taxes, and Finance Minister Pranab Mukherjee postpones GST to April 1, 2011.
• March 22, 2011: The Constitution Amendment Bill (115th) for GST is introduced in the Lok Sabha.
• March 29, 2011: The Bill is referred to the Standing Committee on Finance.
• Nov 2012: Finance minister and state ministers aim to resolve all issues by Dec 31, 2012.
• Feb 2013: The finance minister expresses the government’s commitment to introducing GST and allocates provisions for state compensation in the Budget.
• Aug 2013: The standing committee submits a report to Parliament proposing improvements. However, the bill lapses due to the dissolution of the 15th Lok Sabha.
• Dec 18, 2014: Cabinet approves the Constitution Amendment Bill (122nd) for GST.
• Dec 19, 2014: The Amendment Bill (122nd) is introduced in the Lok Sabha.
• May 6, 2015: The Lok Sabha passes the Amendment Bill (122nd).
• May 12, 2015: The Bill is presented in the Rajya Sabha.
• May 14, 2015: The Bill is forwarded to a joint committee of Rajya Sabha and Lok Sabha.
• Aug 2015: The government fails to secure opposition support for the bill in the Rajya Sabha, where it lacks sufficient numbers.
• Aug 3, 2016: The Rajya Sabha passes the Constitution Amendment Bill by a two-thirds majority. Note: The GST constitutional amendment bill needs approval from at least 50% of state legislatures to be implemented. Assam becomes the first state to pass the GST bill.
• July 1, 2017: GST becomes applicable across India.

Benefits of GST

For Central and State Governments

• Simple and Easy to administer: Because multiple indirect taxes at the central and state levels are being replaced by a single tax “GST”. Moreover, backed with a robust end-to-end IT system, it would be easier to administer.
• Better control on leakage: Because of better tax compliance, reduction of rent-seeking, transparency in taxation due to IT use, and an inbuilt mechanism in the design of GST would incentivize tax compliance by traders.
• Higher revenue efficiency: Since the cost of the collection will decrease along with an increase in the ease of compliance, it will lead to higher tax revenue.

For the Consumer

• The single and transparent tax will provide a lowering of inflation.
• Relief in overall tax burden.
• Tax democracy that is luxury items will be taxed more and basic goods will be tax-free.

For the Business Class

• The ease of doing business will increase due to easy tax compliance.
• Uniformity of tax rate and structure, therefore, better future business decision making and investments by the corporates.
• Removal of cascading effects of taxes.
• Reduction in transactional costs will lead to improved competitiveness.
• Gain to the manufacturers and exporters.
• It is expected to raise the country’s GDP by 2% points.

GST Council

• It is the 1st Federal Institution of India, as per the Finance minister.
• It will approve all decisions related to taxation in the country.
• It consists of the Centre, 29 states, Delhi and Puducherry.
• Centre has 1/3rd of voting rights and states have 2/3rd of voting rights.
• Decisions are taken after a majority in the council.

Supporting Laws to implement GST

To execute GST, additional legislation is essential alongside the Constitution Amendment Act. The GST council has recently proposed five supporting laws, with four of them requiring approval from the parliament, and the fifth necessitating passage by individual state legislatures.
The specifics are outlined below:

• The Central Goods and Services Tax Bill 2017 (The CGST Bill).
• The Integrated Goods and Services Tax Bill 2017 (The IGST Bill).
• The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill).
• The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill).
• And a state GST will be passed by the respective state legislative assemblies.
  • Tax slabs are decided as 0%, 5%, 12%, 18%, and 28% along with categories of exempted and zero-rated goods for different types of goods and services.
  • Further, a cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the rate of 28% for payment of compensation to the States.
  • However, which goods and services fall into which bracket is still an enormous task to be completed by the GST Council.
  • The highest tax slab is pegged at 40%.

What is the Principle of GST?

• The Centre will levy and collect the Central GST.
• States will levy and collect the State GST on the supply of goods and services within a state.
• The Centre will levy the Integrated GST (IGST) on the interstate supply of goods and services, and apportion the state’s share of tax to the state where the good or service is consumed.
• The 2016 Act requires Parliament to compensate states for any revenue loss owing to the implementation of GST.

Issues Arisen OR Unresolved

• Certain items, such as Alcohol and Tobacco, are currently excluded from the GST domain, with states arguing that their inclusion could negatively impact revenue. Some experts suggest that the real reason behind this exclusion may be the political-business nexus and high-profile lobbying. The Finance minister has expressed the possibility of consensus in the future to include these items under the GST regime.
• Determining the tax bracket for items raises concerns about potential lobbying and decision criteria. The Finance minister assures that the GST Council will make such decisions through due diligence and likely by consensus to prevent undue influence.
• The idea of "One Nation one Tax" under GST is diluted due to multiple tax rates and brackets. The Finance minister justifies this by pointing out the diverse capabilities of the target consumers, emphasizing a system where higher-value consumers pay more taxes, similar to democratic principles.
• The Central GST Bill grants the central government the power to notify CGST rates, subject to a cap, raising questions about the appropriateness of changing rates without parliamentary approval. This move takes away the power to impose taxes from Parliament, which traditionally holds that authority.
• Confusion arises regarding the location of consumption under GST, as both state and central governments can tax services based on their consumption location. Specific rules for various services create complexity, potentially leading to higher taxes attributed to states with more registered offices.
• The government's plan to establish an authority to ensure that any reduction in tax rates is passed on to consumers is met with resistance from the industry. Critics view it as an encroachment of inspectorial control, arguing that prices should be determined by the market.
• To avoid dual control, the GST council has compromised on tax assessment, with states handling 90 percent of assesses with an annual turnover of Rs 1.5 crore or less. However, issues arise regarding turnover fluctuations and procedural matters, potentially leading to litigation.
• The issue of casual taxable persons moving between states for short-term business transactions presents a requirement for registration in each state visited during such periods.

What is GSTN?

• GSTN operates as a non-profit company under the Companies Act and has the mandate to establish and manage the information technology infrastructure for the Goods and Services Tax (GST). While the Central government and state governments collectively own a 49% stake (24.5% each), the remaining 51% is distributed among five financial institutions. 
• LIC Housing Finance holds an 11% stake, while ICICI Bank, HDFC, HDFC Bank, and NSE Strategic Investment Corporation Ltd each hold a 10% stake.
• The contract for developing the hardware and software for GST was awarded to Infosys Ltd by GSTN. The primary objective of establishing GSTN was to create an entity that maintains equal distance from both the Central and state governments, allowing it to provide advice to both on the information technology network.

Controversy around GSTN

• Some individuals argue that GSTN, being a private company, is not subject to government control, raising concerns about potential breaches of tax data security and manipulation for the benefit of certain corporations.
• In response to these allegations, the Finance minister addressed the parliament, explaining that the arrangement was established by the empowered committee of the previous government. The current government has endorsed it, emphasizing the need for private professionals in managing such a high-stakes system. He assured that if any issues arise in the future, the structure can be amended through debate and discussion within the GST Council.
• Additionally, the GSTN website provides clarification, asserting that strategic control over GSTN remains with the government due to the sensitivity of its role and the information it handles. Measures ensuring government control include the composition of the board, mechanisms like special resolution and shareholders agreement, the deputation of government officers, and agreements between GSTN and the governments.

Widening Tax Base

Context

The Central Board of Direct Taxes (CBDT) suggests that the rise in the number of individual taxpayers filing income tax returns (ITRs) is a sign of the tax base expanding, attributed to the initiatives implemented by the Income Tax Department.

Key Findings

• 90% Increase in ITRs Filing: It increased to 6.37 crore in Assessment Year (AY) 2021-22 (financial year 2020-21) from 3.36 crore in AY 2013-14. 
  • Around 7.41 crore ITRs have been filed for AY 2023-24 till date during the current fiscal, including 53 lakh new first time filers.
• Positive Trend: Migration to higher range of gross total income. 
  • In the range of gross total income of Rs 5-10 lakh, and Rs 10-25 lakh, the ITRs filed by individual taxpayers registered an increase of 295% and 291% from AY 2013-14 to AY 2021-22, respectively.
• Not Filing ITRs: The range of gross total income upto Rs 5 lakh includes individuals having income below taxable limit who may not be filing returns.
• Trend of proportionate contribution of gross total income of individual taxpayers vis-à-vis all individual taxpayers from AY 2013-14 to AY 2021-22:
  • Top 1%:  Decreased from 15.9% to 14.6% 
  • Middle 74%: Increased from 75.8% to 77%. 
  • Bottom 25%: Increased from 8.3% to 8.4%.
• Total Number of Taxpayers: Picked up pace in FY 2020-21 to 6.33 crore though it remained below pre-pandemic 2018-19 level by over 20 lakh.

Jan Vishwas (Amendment of Provisions) Bill, 2023

Context

During the monsoon session, the Lok Sabha approved the Jan Vishwas (Amendment of Provisions) Bill, 2023, with the objective of enhancing both Ease of Living and Ease of Doing Business.

What is the Jan Vishwas (Amendment of Provisions) Bill, 2023?

• About:
  • The proposed Bill seeks to modify 183 provisions within 42 Central Acts overseen by 19 Ministries/Departments. These Acts span diverse domains, including environment, agriculture, media, industry, trade, information technology, copyright, motor vehicles, cinematography, food safety, and more.
  • The main objective of the Bill is to decriminalize minor offences that do not involve any harm to the public interest or national security and replace them with civil penalties or administrative actions.
• Background:
  • The Bill was introduced in Lok Sabha on 22nd December 2022 and referred to the Joint Committee of Parliament.
• Need:
  • Rationalize criminal provisions to reduce undue pressure on the justice system.
  • Address technical and procedural defaults without imposing severe penalties.
  • Establish a balanced approach between the severity of offence and prescribed punishment.
  • Boost the growth of businesses by eliminating barriers and promoting a conducive legal environment.
• Key Features of the Bill:
  • The Bill seeks to remove imprisonment clauses and/or fines in some provisions and convert them into penalties in some others.
    • The penalties will be determined by adjudicating officers appointed by the respective Ministries/Departments.
  • The Bill also introduces compounding of offences in some provisions, which means that the offenders can settle their cases by paying a certain amount without going through a court trial.
  • The Bill provides for a periodic revision of fines and penalties every three years, with an increase of 10% of the minimum amount for various offences in the specified Acts.
  • The Bill removes all offences and penalties under the Indian Post Office Act, of 1898, which is considered to be obsolete and irrelevant in the present context.
• Benefits:
  • By introducing administrative adjudication mechanisms, the Bill reduces pressure on the justice system, helps in reducing case pendency, and facilitates a more efficient and effective justice dispensation.
  • The legislation aims to promote governance based on trust by guaranteeing that citizens, businesses, and government departments can function without the apprehension of imprisonment for minor, technical, or procedural lapses.
• Concerns:
  • The Jan Vishwas Bill replaces imprisonment with fines or penalties, which is not enough for decriminalization.
  • Experts argue that the Bill represents a 'quasi-decriminalization', and more efforts are needed to institutionalize true decriminalization.
  • Questions were raised regarding the appointment of adjudicating officers under the Air (Prevention and Control of Pollution) Act and the Environment (Protection) Act, 1986, expressing concerns about their technical competence for overseeing legal proceedings in this context.

What are the Key Laws Covered in the Bill?

• The Indian Forest Act, 1927.
• The Air (Prevention and Control of Pollution) Act, 1981.
• The Information Technology Act, 2000.
• The Environment (Protection) Act, 1986.
• The Copyright Act, 1957.
• The Patents Act, 1970.
• The Railways Act, 1989.
• The Food Safety and Standards Act, 2006.

Gig workers and Gig economy

Context

The Rajasthan Assembly recently approved the Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023.

About Gig Economy

• A gig economy refers to a job market that relies on freelancers and independent contractors rather than full-time, permanent employees.
• Categorization of Gig Economy:
  • Platform-based: Utilizing online apps or digital platforms for work, such as ride-hailing, food delivery, e-commerce, and online freelancing.
  • Non-platform-based gig workers: Engaged in work outside the traditional employer-employee relationship, including casual wage workers and self-employed individuals in sectors like construction, domestic work, and agriculture.
• Advantages of Gig Economy:
  • For Workers: The gig economy offers increased flexibility, autonomy, income opportunities, skill development, and inclusivity.
  • For Employers: It provides access to a diverse talent pool, reduced fixed costs, greater scalability, and improved customer satisfaction.
  • For Customers: The gig economy presents more options, convenience, quality, and affordability.

Gig Economy in India

• According to a NITI Aayog report, the platform-based gig economy has experienced significant growth in India in recent years, driven by factors like the demographic dividend, urbanization, digitalization, and consumer demand.
• Platform-Based: As of 2020-21, there are approximately 24 million platform-based gig workers in India, constituting around 6.5% of the non-agricultural workforce or 4% of the total workforce. The report predicts that the platform-based gig economy could generate up to 56 million new jobs by 2029-30, contributing 1.3% to India's GDP in the long run.
• Non-Platform Based: Invest India indicates that there are about 120 million non-platform-based gig workers in India as of 2019-20, making up around 32% of the non-agricultural workforce or 20% of the total workforce. The report suggests that the non-platform-based gig economy has the potential to create up to 34 million new jobs by 2029-30.
• Economic Contribution: In 2020, ASSOCHAM projected that India's gig economy would experience a compound annual growth rate of 17%, reaching $455 billion by 2023. As per Nasscom, the gig economy is anticipated to contribute approximately 1.25% to India's GDP by 2025, with the potential to generate 90 million jobs.
• Resilience During Pandemic: The gig economy has demonstrated resilience and potential during the Covid-19 pandemic, continuing to generate millions of jobs and maintaining connectivity within communities.

Need of Gig Economy in India

• Employment Opportunity: India as a developing country is faced with the challenge of providing employment opportunities to all. Gig economy has expanded the availability of jobs and improved labour force participation. 
• Catering demand of low Skilled: At present, about 47 per cent of the gig work is in medium-skilled jobs, about 22 per cent in high skilled, and about 31 per cent in low-skilled jobs. 
• Young demographic dividend: India has a large and growing population of young people who are well-educated and tech-savvy. 
  • Many millennials value flexibility and work-life balance and are drawn to the gig economy because of the opportunities it provides.
  • Youth participation in the Gig economy has seen an 8-fold increase between 2019-2022.
• Female Labour Force: Female gig workers benefit from the income-generating potential, choice and the flexible work modalities of the gig economy. 
  • Women’s participation in the gig economy has increased from 18% to 36%.
• Catering to Retired Persons: Due to the flexibility that contract work offers, many people after retirement start working for themselves. 
• Democratization of Jobs: The gig and platform sector has low-entry barriers and hence holds enormous potential for job creation in India. 
• Technological Disruption: Tech advancements, particularly in AI, robotics, and data analytics, have eliminated workplace limitations. Tech integration in the gig economy can boost productivity and improve gig workers’ living standards.
• Last Mile Delivery:  It has revolutionized the last-mile delivery industry, making it more accessible, affordable, and efficient. 
• Remote Working: Telecommunications have made work more dynamic, allowing individuals to collaborate regardless of where they are geographically located.
• Start-Up Culture: Gig workers can be a cost-effective alternative to traditional employees, as they can be hired on a project-by-project basis, without the need to provide benefits or other forms of compensation. 

Steps taken to Promote Gig Economy in India

• Central Legislation: The Code on Wages, 2019 mandates the provision of a universal minimum wage and floor wage for all sectors, both organized and unorganized, including gig workers. The Code on Social Security, 2020 recognizes gig workers as a distinct occupational category, establishing a dedicated Social Security Fund to extend benefits to them.
• State Government Initiatives: The Karnataka government has announced an accident and life insurance cover of Rs 4 lakh for gig workers, covering the entire annual premium cost. In Rajasthan, the Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, defines gig workers and aims to register them, ensuring social security guarantees and providing a mechanism for addressing grievances. The state will maintain a database with unique IDs for gig workers.
• Rajasthan Platform-Based Gig Workers Welfare Board: This board, comprising two members each from gig workers and aggregators nominated by the state government, along with two civil servants, will oversee the welfare of platform-based gig workers.
• Rajasthan Platform-Based Gig Workers Social Security and Welfare Fund: This fund is established for the benefit of registered gig workers, with welfare fees charged from aggregators.
• Penalties on Aggregators: The state government has the authority to impose fines on aggregators, ranging from up to Rs 5 lakh for the first contravention to up to Rs 50 lakh for subsequent contraventions.

Concern Associated with Gig Economy

• Increase in Voluntary Unemployment:  It has led to an increase in voluntary unemployment as some workers prefer the flexibility and autonomy of gig work over traditional employment.
• Disrupting Work-Life Balance: Flexibility of working gigs can actually disrupt the work-life balance, sleep patterns, and activities of daily life. 
  • It often means that workers have to make themselves available any time gigs come up, regardless of their other needs, and must always be on the hunt for the next gig.
• Job insecurity: Gig workers in India often lack job security, as they are typically engaged on a project or assignment basis, rather than as permanent employees.
• Income instability: Gig workers in India may experience fluctuations in income due to the irregular and unpredictable nature of gig work. 
• Lack of formalization: Many gig workers in India operate in the informal sector, which can limit their ability to access credit, government support programs, and other resources.
• Lack of legal protection & social security: Gig workers are not covered under India’s labor laws and do not have legal protection in case of workplace harassment, discrimination, or unfair termination. 
  • Gig workers do not have access to social security benefits such as health insurance, retirement benefits, and paid leave.
• Unequal bargaining power: Gig workers in India may lack the bargaining power to negotiate fair compensation and working conditions, particularly when they are competing against a large pool of other workers on digital platforms.
• Training and upskilling: Many gig workers lack the necessary skills to perform their work effectively. Gig workers often have limited opportunities for upskilling and career advancement.
• Social stigma: Gig work is still viewed by some in India as a temporary or low-paying option, which can result in social stigma and lack of recognition for the work done by gig workers.
• Payments, Incentives, and Growth Models: Absence of a minimum wage guarantee makes workers susceptible to financial vagaries during crises/disasters
• Workplace Conditions & Interaction: Lack of appropriate forums that capture concerns of gig-workers and help platforms to understand the challenges and problem-solve.

Way Forward

• Health Benefits and Leaves: Gig economy platforms can provide health insurance benefits to their workers to ensure their well-being and safety. 
  • These include coverage for medical costs, hospitalization, preventive care services such as regular health check-ups and vaccinations, as well as paid leaves for workers. 
• Skill Development for Informal Gig Employees: Platform-led upskilling initiatives are essential for enabling workers in the informal sector, such as driving or masonry, to take up jobs in the gig sector. 
  • Platform businesses can provide certifications, allowing workers to progress better in their careers.
• Adequate Protection: Although gig workers get minimum wages, they need certain legal protection, policies, and opportunities like other employees protected under labour laws. 
  • This can protect the rights of gig workers and help curb labour disputes. 
• Addressing Gender Bias: Incentivise more women to take up the role, enabling platforms to expand markets and attract more women customers.
  • Adopt gender-inclusive language and imagery to normalize participation of women platform gig-workers enabling platforms to expand markets and attract more women customers.
• NITI aayog recommended five-pronged RAISE approach to ensure realization of full access to social security for all gig and platform workers: 
  • Recognise the varied nature of platform work to design equitable schemes. 
  • Allow augmentation of social security through innovative financing mechanisms. 
  • Incorporate, while designing schemes, the specific interests of platforms, factoring the impact on job creation, platform businesses and workers. 
  • Support workers to subscribe to government schemes and welfare programmes through widespread awareness campaigns. 
  • Ensure benefits are readily accessible to workers.
• Incentivising ‘platformization’: To accelerate ‘platformisation’ i.e., give impetus for more platform businesses by starting a program called ‘Platform India’ along the lines of the government’s earlier Start Up India initiative.

Conclusion

• The increasing demand for gig workers and the rise in participation of gig workers, especially the youth and women indicate that the gig economy in India is gaining popularity.
• According to a report by the International Labour Organization (ILO), India is the second-largest gig economy in the world, with around 56% of all gig workers in the Asia-Pacific region working in India.
• The gig economy is predicted to be a significant building block in achieving India’s aim to become a $5 trillion economy by 2025. This would help in bridging the income and unemployment gap. 
• Greater collaboration between the government, employers, and workers’ organizations is needed to ensure that gig workers are able to enjoy their rights and access the benefits they are entitled to.