Support for Gig Workers in India’s Budget 2025

In a significant move to support gig workers, Finance Minister Nirmala Sitharaman announced new initiatives during her Budget speech today. The government plans to provide identity cards to gig workers, ensuring they have access to essential services. This initiative is part of a broader strategy to enhance social security for those engaged in the gig economy. The Budget aims to uplift various sectors, including street vendors and urban workers, while also focusing on the welfare of online platform workers. This article will delve into the key announcements made in the Budget and their implications for gig workers in India.

Identity Cards and Healthcare Access for Gig Workers

One of the most notable announcements in the Budget is the provision of identity cards for gig workers. This move aims to formalize the status of gig workers, who often operate in a grey area without proper recognition. By issuing ID cards, the government hopes to empower these workers and provide them with a sense of belonging in the workforce. Alongside this, the government will also introduce a social security scheme that grants gig workers access to healthcare services. This is crucial, as many gig workers lack adequate health coverage, leaving them vulnerable in times of need.

The initiative to provide identity cards and healthcare access is a step towards recognizing the contributions of gig workers to the economy. These workers often face challenges such as job insecurity and lack of benefits. By formalizing their status and offering healthcare, the government is taking a significant step towards improving their working conditions. Additionally, the registration of gig workers on the e-Shram portal will streamline access to various benefits and services, making it easier for them to navigate the complexities of the gig economy.

Revamping the PM SVANidhi Scheme

The Budget also announced a revamp of the PM SVANidhi scheme, which is designed to support street vendors. The revamped scheme will feature enhanced loans from banks, UPI-linked credit cards with a limit of Rs 30,000, and capacity-building support for vendors. This comprehensive approach aims to empower street vendors, who play a vital role in urban economies. By providing them with better access to financial resources, the government hopes to boost their livelihoods and enhance their economic stability.

Street vendors often face challenges in accessing credit due to a lack of formal documentation. The introduction of UPI-linked credit cards will simplify the borrowing process and encourage vendors to engage in digital transactions. This is particularly important in today’s increasingly digital economy. The capacity-building support will equip vendors with the skills and knowledge they need to thrive in a competitive environment. Overall, these measures are expected to uplift street vendors and contribute to the growth of the informal sector.

Social Security Framework for Gig and Platform Workers

For the first time, gig and platform workers have been defined in the Code on Social Security 2020, which was enacted by Parliament. This landmark legislation lays the groundwork for providing social security and welfare benefits to these workers. The Code outlines various provisions, including life and disability cover, accident insurance, health and maternity benefits, and old-age protection. A committee has been formed to suggest a framework for implementing these benefits, ensuring that gig workers receive the support they need.

The establishment of a social security framework is crucial for addressing the vulnerabilities faced by gig workers. Many of these workers lack access to traditional employment benefits, leaving them exposed to financial risks. By implementing the provisions outlined in the Code, the government aims to create a safety net for gig workers. This initiative not only recognizes the importance of gig work in the economy but also promotes inclusivity and social justice. As the gig economy continues to grow, these measures will play a vital role in ensuring that workers are protected and supported.

Economic Growth and Future Prospects

In her Budget speech, Finance Minister Nirmala Sitharaman emphasized the government’s commitment to accelerating economic growth and fostering inclusive development. The Economic Survey 2024-25 projects that India’s economy will grow between 6.3% and 6.8% in the upcoming financial year. However, it also highlights the need for India to achieve a growth rate of around 8% for a sustained period to realize its vision of a developed nation, termed “Viksit Bharat.”

The Budget session of Parliament, which began on January 31 and is scheduled to conclude on April 4, serves as a platform for outlining the government’s fiscal policies and expenditure proposals. With this being her eighth budget presentation, Sitharaman’s focus on gig workers and informal sectors reflects a broader understanding of the changing dynamics of the workforce. As the government seeks to enhance the spending power of the rising middle class, the measures announced in the Budget are expected to contribute to economic recovery and growth.

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