Why Budget Was a Turning Point for Gig Workers in the AI Era
The Union Budget 2025 unveiled several promising provisions for India’s population of 1.4 billion people, including the tech and startup community. An interesting inclusion was the mention of gig workers in India. Finance minister Nirmala Sitharaman highlighted the role of gig workers in driving the new-age services economy. To recognise their contribution, the government will issue identity cards and register them on the e-Shram portal. They will also receive healthcare benefits under the Pradhan Mantri Jan Arogya Yojana (PM-JAY). “This measure is likely to assist nearly one crore gig workers,” Sitharaman said while presenting the Budget. What Does This Mean? The labour and employment ministry launched the e-Shram portal in August 2021 to create a comprehensive database of India’s unorganised workers, including gig and platform workers. However, the recent Budget announced targeted measures for gig workers on the e-Shram portal. The initiative will not only formalise their status but also grant them access to healthcare benefits under the PM-JAY, a step that will ensure social security for the emerging workforce. “It’s the first time they’ve announced ID card issuance, which will, in essence, formalise gig work and potentially even make it more socially acceptable as a profession in a way, which hasn’t been the case thus far,” Madhav Krishna, founder and CEO of Vahan.ai, told AIM following the Budget announcement. Krishna called the government’s announcement to provide medical insurance under the  PM-JAY scheme a significant move, especially considering elaborate discussions between the industry and the government about who would cover these costs. “That’s also a very positive move, and it shows that the government is committed to this,” said the founder of Vahan, an AI-driven recruitment company that provides a platform to connect blue-collar job seekers with employment opportunities. AI in the Gig Economy Vahan.ai has successfully placed over 5 lakh workers in more than 480 cities to date. Its notable clients include industry giants like Zomato, Swiggy, Flipkart, Zepto, Blinkit, Amazon, Rapido, and Uber. The startup has been increasingly using AI to smoothen operations in the gig field, helping workers get employed in quick commerce and e-commerce companies. Krishna explained that AI and ML are used to optimise order allocation and ensure that an adequate number of delivery agents are available in high-demand areas during peak hours. “This efficient allocation process, in turn, may create opportunities for delivery agents to earn higher incomes,” he added. AI-Led Job Losses Not for Gig While AI has been powering several developments, the question of AI eliminating jobs has not subsided. In the Economic Survey 2025, the Indian government acknowledged the ongoing discussions about AI’s impact on employment, referring to OpenAI’s statement about AI potentially replacing the workforce by 2025. The survey found that 68% of employees expect AI to automate their jobs within five years, while 40% fear skill redundancy. This has only added fuel to the conversation of AI in India’s service-driven economy. However, AI-led job loss may not truly affect the gig economy. Zepto co-founder and CEO Aadit Palicha, in an interview, emphasised the impact quick commerce has had on the employment of these sectors. Surge in the Gig Economy Talking about a survey conducted by Zepto on delivery partners, Palicha revealed that, as per data, most of the respondents were unemployed before being involved in gig work. Palicha further said that some of the respondents previously engaged in some form of informal employment, where they often didn’t receive minimum wages. Now, with these platforms, gig workers have been assured minimum wages. “There were jobs for delivery agents with e-commerce platforms such as Flipkart, Amazon, etc. earlier as well. However, they were limited in numbers and earning potential,” Krishna said. “With the advent of quick commerce companies such as Swiggy and Zepto, there has been an exponential boom of opportunities, not just for delivery agents but also for roles like dark store staff,” he added. Notably, the average income of delivery agents varies based on several factors such as seasons, cities they are operating from, and whether the company they are associated with is an e-commerce one or a q-commerce. “Typically, the monthly salary range of delivery personnel is around ₹15,000 to ₹18,000, depending on their geographic location. During the festive season and on year-ends, the earnings can increase by an average of 20-30%,” Krishna told AIM. With the rise in employment for gig workers and increased security via health insurance and other initiatives, the segment may be able to safeguard their jobs in an era that is questioning AI’s role in replacing jobs worldwide.
“It’s the first time they’ve announced ID card issuance, which will, in essence, formalise gig work and potentially even make it more socially acceptable as a profession in a way.”
“It's the first time they've announced ID card issuance, which will, in essence, formalise gig work and potentially even make it more socially acceptable as a profession in a way.”
["e-shram", "gig economy", "nirmala sitharaman", "union budget", "vahan ai", "Zepto"]
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["AI", "ML", "OpenAI", "Aim", "RAG", "R", "Go", "API", "GAN", "startup"]
As a rare blend of engineering, MBA, and journalism degree, Vandana Nair brings a unique combination of technical know-how, business acumen, and storytelling skills to the table. Her insatiable curiosity for all things startups, businesses, and AI technologies ensures that there's always a fresh and insightful perspective to her reporting. She now hosts her tech segment 'Point Break' on AIM Tv.