Answer Writing Practice for UPSC IAS & UPPSC Mains Exam: Paper - IV (General Studies – III) - 03 October 2019

Answer Writing Practice for UPSC IAS Mains Exam

Answer Writing Practice for UPSC IAS & UPPSC Mains Exam

UPSC Syllabus:

  • Paper-IV: General Studies -III (Technology, Economic Development, Bio-diversity, Environment, Security and Disaster Management)

Q. What is a Gig Economy? Discuss the benefits and challenges of a Gig Economy in India? (250 words)

Model Answer:

  • Why in News?
  • Introduction: What is Gig Economy?
  • Benefits of Gig Economy
  • Challenges faced by Gig Economy
  • Conclusion

Why in News?

According to the Oxford Internet Institute’s ‘Online Labor Index’, India leads the global gig economy with a 24% share of the online labour market. This prompted, India to draft a social security code proposing to offer benefits from provident funds to health cover, accident insurance, and education for children of informal and gig workers.


Gig Economy is defined as a free market system in which the independent workers are engaged for short period of time in a temporary position. It is also referred to as the “freelancer economy,” “agile workforce,” “sharing economy,” or “independent workforce.” In India, Delhi has emerged as the top destination for migrant workers joining India’s tech-enabled gig economy.

The gig economy is made up of three main components:

  • The independent workers paid by the gig (i.e., a task or a project) as opposed to those workers who receive a salary or hourly wage.
  • The consumers who need a specific service, for example, a ride to their next destination, or a particular item delivered
  • The companies that connect the worker to the consumer in a direct manner, including app-based technology platforms.

Benefits of Gig Economy:

  • The era of digitalization, people prefer to work from anywhere he is comfortable in. this has not only enabled the employees to do work that they prefer but has also provided freedom to the employers to select the best talent available for a job. Geography is no longer a hindrance in order to pool in the best talents available for a project.
  • Gig economy is beneficial to the business houses. The big business houses can save their resources. For e.g., various benefits like provident fund, paid leave and office space can be saved.
  • The gig economy provides more choices to the workers as a result people also change jobs many times until they get the job of their choice.
  • The gig economy gives scope to the workers to do experiments.
  • Gig economy is more profitable as a person can earn extra through freelancing.
  • Gig economy enables a woman to enjoy both without hampering the pleasure of any.
  • Gig Economy is also very helpful to the retired people. The earnings from their works are helpful as it would minimize their dependence on their children for economic purposes and also keep them away from depression, many a times due to loneliness.
  • Start-ups, who have financial restraints, most of the time, survive because of the benefits they get from the freelancers and part time workers.

Challenges faced by Gig Economy:

  • There is lack of job security in a gig economy.
  • It is mostly unregulated as a result there is fewer benefits as compared to the traditional economic system.
  • The gig economy workers have to upgrade their professional skills from their own pocket as the company does not spend on training employees.
  • Workers can be terminated anytime in a gig economy.
  • The workers are not entitled to pensions, gratuity, perks etc. that is available in full-time jobs.
  • There is no basis on which banks and other financial service providers can extend lines of credit when steady income is not assured.
  • The social welfare objectives can be neglected if business and profitable avenues of freelancing are prioritized.
  • In few work projects where teamwork is essential, gig economy can become dysfunctional.


Job creation in India is meagre. There is a section of the population who is completely relying on the Gig Economy. Therefore, there is a need for policies and a robust system to regulate the Gig Economy. So that workers can get benefitted by working in this emerging economy.

Click Here for Answer Writing Practice Archive

हिन्दी में उत्तर लेखन अभ्यास कार्यक्रम के लिए यहाँ क्लिक करें