The Gig Economy in India: Threats and Implications for Regular Employment in the Context of the 2025 Labour Act Reforms

Abstract

The rapid growth of the gig economy in India has transformed the nature of work, employment relations, and labour protection. While gig platforms have increased opportunities for flexible and technologically advanced work, they have also raised questions about the future of traditional employment. This paper analyses the threats posed by gig work to regular jobs in India, examining issues of job security, income stability, labour rights, and social protection. The study further evaluates the transformative impact of the four new labour codes, which come into effect on November 21, 2025, particularly the provisions related to gig and platform workers under the Social Security Code, 2020. Through a review of existing literature, government documents, industry data, and recent reforms, this research provides a comprehensive understanding of how the gig economy impacts employment patterns and labor market outcomes in India. The results show that while gig work promotes innovation and employment flexibility, it also risks undermining traditional job quality and accelerating informalization. The paper concludes with policy recommendations for creating a balanced labour ecosystem that protects regular employment while also supporting technological advancement and platform-based entrepreneurship.