In her Union Budget 2025 presentation on February 1, Finance Minister Nirmala Sitharaman unveiled several crucial measures aimed at supporting India’s growing gig workforce. The initiatives include issuing identity cards and facilitating healthcare access, marking a significant step toward formalizing the gig economy and integrating workers into the country’s welfare system.
Sitharaman emphasized the pivotal role of gig workers in the modern services economy, particularly those working on online platforms. To acknowledge their contributions and ensure their well-being, she announced the introduction of identity cards for gig workers. These workers will also be registered on the e-Shram portal, which is designed to connect informal workers to government welfare programs.
One of the most significant benefits announced for gig workers is access to healthcare under the Pradhan Mantri Jan Arogya Yojana (PMJAY). This healthcare coverage is expected to extend to nearly 1 crore gig workers, providing them with essential medical services. Sitharaman stated, “Gig workers on online platforms bring significant dynamism to the new-age services economy. Acknowledging their contribution, our government will provide them with identity cards and register them on the e-Shram portal. They will also receive healthcare under the PM Jan Arogya Yojana.”
In addition to these provisions, the finance minister introduced a social security scheme specifically designed for online platform workers. This initiative will be implemented through a public-private partnership (PPP) model, encouraging states to adopt it for the benefit of their workers. The government will also assist states through the India Infrastructure Project Development Fund (IIPDF) scheme to prepare and implement these PPP proposals effectively.
NITI Aayog’s projections show that India’s gig economy is set for massive growth, with the potential to employ over 23 million individuals by 2030. The government’s efforts to formalize and support this sector through welfare programs and identity registration reflect its understanding of the gig economy’s increasing importance in the country’s overall employment landscape.
The budget session, which began on January 31, 2025, and will continue until April 4, 2025, has been marked by several significant fiscal strategies, taxation reforms, and revenue-expenditure proposals. The economic outlook for India, according to the 2024-25 Economic Survey, anticipates a growth rate between 6.3 percent and 6.8 percent in the upcoming fiscal year.
This is the eighth Union Budget presented by Nirmala Sitharaman, showcasing her continued commitment to shaping policies that promote inclusive growth. With these latest announcements, the government has demonstrated a focus on ensuring that even the most informal and marginalized workers, such as gig economy participants, are included in the broader social and economic framework.
By providing healthcare, registration, and social security, Budget 2025 sets the stage for a more equitable and supportive environment for gig workers, whose numbers are rapidly increasing across India. The proposed measures aim to not only offer immediate assistance but also ensure that gig workers can access long-term benefits, helping them navigate an increasingly complex and dynamic economy.
These changes reflect the government’s vision for a more inclusive India, where all workers—regardless of their employment model—can thrive with the protection and resources they need.
