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IISPPR

Decent Work and Economic Growth
Manini Agarwal

THE GIG ECONOMY: PROBLEMS AND CHALLENGES FOR WORKERS

By Namrata P. Rajiv, Kinjal Sharma, Gautum Kumar Mishra and Manini Agarwal  The year 2025 marked a significant turning point for India’s gig economy. Prime Minister Modi’s decision to provide gig workers with a legitimate identity through the e-shram portal and health insurance coverage under the Jan Arogya Yojana scheme demonstrated the government’s commitment to formalising this sector (Investopedia & Munichiello, 2024).  As illustrated in the chart below, the gig economy has experienced exponential growth particularly driving the youth to this sector as an alternative employment, driven by the rise of online platforms such as Zomato, Instamart, Blinkit, and Zepto. This growth is expected to continue as more workers join the platform. The recent budget has acknowledged the sector’s potential by introducing measures to formalise it (Boston Consulting Group, 2021).  From an economic perspective, investing in the gig economy offers numerous benefits, including cost-saving advantages for businesses and greater customer acquisition for consumers seeking doorstep delivery. According to NITI Aayog’s report, “India’s Booming Gig and Platform Economy,” the workforce in this sector is projected to exceed 1 crore in 2024-25 and reach 2.35 crore by 2029-30 (One Crore Gig Workers to Benefit Under PM Jan Arogya Yojana Healthcare Scheme, n.d.).  However, this growth also presents challenges, particularly regarding fixed-period contracts, seasonal employment, and the ability to hire and fire workers flexibly. To address these concerns, it is essential to understand the challenges, prospects, and recommendations for taking this economy forward. Increased digitalisation and the growth of e-commerce have led to a rise in the number of gig economy participants. With projections indicating a total of 86.5 million participants by 2027, it becomes pertinent to address the challenges and analyse the workings of the gig economy (Upwork, n.d.).  CHALLENGES: The gig economy has revolutionised the nature of work all across the world providing new job opportunities and flexibility of labour to millions of gig workers. Whether it is Uber, Zomato, or Swiggy, the gig economy is said to have revolutionised India’s economy with at its forefront the demographic dividend of half a million labor force comprising the youth. However, despite the enormous benefits provided there are several challenges causing adverse effects on the workers and the economy as a whole. Most specifically these issues include the legal insecurities due to the regulatory frameworks and the job instability posed by the gig economy. Online transport services like Ola, Uber, Rapido, etc have a huge number of gig workers spanning across the country, in cities like Mumbai, Bangalore, Chennai, Delhi, etc. In a study, it was found that 60% of drivers work for more than 12 hours a day, and up to 83% work for more than 10 hours a day. Compared to the Indian Factories Act, of  1948, which sets working hours at 8 per day and 48 hours per week, gig workers often work beyond legal work limits, without any overtime. Furthermore, these companies have a ‘’30 min delivery policy’’ to maintain competition in the market, putting immense time-bound pressures on gig workers. Most of these companies work on demand-based services with no fixed working hours and low wages.  1.1 Regulatory Framework One of the most significant challenges faced by the workers is concerning workers’ classification. The majority of the companies classify the workers as independent contractors rather than employees to avoid obligations entitled to them resulting in blatant discrimination of workers. Gig workers in these scenarios are suffering from minimum wage laws, overtime pay, and workplace protections (Rogers, 2016). This classification undertaken by companies has often led to legal battles, with courts for example, in the landmark case of “Dynamex Operations West, Inc. v. Superior Court of Los Angeles” (2018), the Supreme Court of California ruled in favour of stricter worker classification standards, leading to the passage of Assembly Bill 5 (AB5) mainly due to pressure from gig giants like Uber. There are rulings which are held which have favoured workers while others have upheld the gig worker’s classification as independent contractors. In India, gig workers face several challenges especially due to the ambiguous labour laws. There are attempts made to address these concerns such as the Code on Social Security 2020 to recognise gig workers and to offer social security benefits. However, this law does not mandate companies to provide employment benefits like minimum wage, social security, and job security and the implementation of this law remains very weak. This has resulted in gig workers continuing to operate in the grey area, with uncertainties. Another significant issue faced is concerning tax contributions. Most of the time gig workers do not receive employer support. In the traditional workforce, taxes are automatically deducted by employers easing the complex procedures of filing taxes. Whereas in the gig economy gig workers themselves must set aside money, calculate, and then pay their self-employment taxes. This at times leads to financial strains for the gig workers(Collins et al., 2019). Research indicates that gig workers struggle with the complexities of tax filing as the majority of them are unaware of tax regulations. Moreover, the absence of employer contributions to social security and insurance also places an additional burden on gig workers, adversely affecting their earnings and long-term financial stability (OECD, 2021). 1.2 Job Insecurity and Lack of Benefits In the case of the traditional workforce which typically requires a workforce full time the gig workers lack job security as their employment depends on the fluctuating demand and platform algorithms. Studies indicate that gig workers often experience income volatility due to unpredictable work availability (Woodcock & Graham, 2020) and it was also found that 29% of gig workers rely on gig work as their primary source of income, making them increasingly vulnerable to sudden shifts in demand as per a study conducted by the Pew Research Center (2021). Algorithmic adjustments tend to prioritise the workers leaving them without work affecting their long-term financial stability. Rosenblat and Stark (2016) found that ride-hailing platforms use opaque algorithms to determine worker availability and compensation, which reduces earnings without notice.

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International Relations
Misha Sheth

Sudan’s Crisis: The World’s Forgotten Tragedy

Sudan’s prolonged crisis has spawned a devastating humanitarian disaster, with over 25 million people in need of aid. The conflict has unleashed widespread violence, ethnic atrocities, and human rights abuses, including reports of rape and mass displacement. Despite efforts by international organizations and governments, the situation remains dire, with critical infrastructure collapsing, inflation soaring, and economic slowdown exacerbating the suffering.

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Peace, Justice, and Strong Institutions
Sneha Kumari Shaw

Global Supply Chain Disruption due to turmoil in the Middle East

Approximately 12% of total global trade passes through the Suez

Canal.Roughly 30% of the world’s seaborne oil trade passes through the Strait

of Hormuz.It is a crucial waterway connecting the Red Sea and the

Mediterranean Sea, offering a shorter shipping route between Asia and

Europe.Due to the recent conflict between Israel and Hamas, this region has

created uncertainty in the global supply chain.This region is a major supplier

of oil and petroleum products; any disruption here can impact all sectors in all

countries.Therefore, keeping in mind the importance of this region, this report

specifically focuses on the disruptions created by the Israel-Israel conflict

and their impact.

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Public Policies
Aahna Srivastava

Employment Generation: India’s Specific

Authored by: Aahna Srivastava, Anjali, Divya Atalkar, Khushi Shah and Sakshi Sharma

ABSTRACT
India has witnessed significant employment growth recently, but job creation is still a major concern. Through various survey reports presented by the International Labour Organization and the Ministry of Statistics and Programme Implementation, this paper studies the current scenario of India’s employment growth and government strategies, which aim to boost employment in the country but are not equivalent to its promises. Additionally, the paper frames suggestions for India alongside successful international employment models to overcome challenges faced during job creation and provide better options for its population.

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Good Health and Well-being
Rajat Rao

The Relationship Between Childhood Adversity and The Development Of Borderline Personality Disorder

Borderline Personality Disorder (BPD) is a serious psychiatric condition influenced by childhood adversity, temperament, and triggering events. Research links BPD to early trauma, including parental neglect, abuse, and unstable home environments. Studies show that adolescents and adults with BPD report significantly higher rates of childhood adversity than their peers. Temperamental traits like emotional instability and impulsivity, combined with environmental factors such as bullying and trauma, contribute to its onset. Genetic predispositions also interact with early adverse experiences, influencing BPD symptoms. Emotional abuse and neglect are among the strongest risk factors. BPD affects emotional regulation, relationships, and identity, with therapy being the most recommended treatment.

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Health
Rajat Rao

Impact of Social Isolation on Elderly People

Social isolation in elderly individuals, particularly women aged 60-69, is linked to health issues such as depression, cardiovascular disease, and dementia. Factors like hearing loss, loss of a spouse, and low social engagement contribute to isolation. The COVID-19 pandemic worsened loneliness due to financial concerns and lack of digital connectivity. Those with lower education levels or divorced individuals are especially vulnerable. Research highlights that social connectedness improves well-being and longevity. Initiatives like community outreach, telehealth services, and digital literacy programs can help mitigate the impact of isolation, fostering stronger social ties and enhancing quality of life for older adults.

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Climate Action
Rubin cyriac

Corporate Social Responsibility and Financial Performance: Analysing the Impact on Renewable Energy Firms

Corporate Social Responsibility (CSR) has emerged as a crucial aspect of business strategy, particularly in the renewable energy sector. Firms in this industry are increasingly adopting CSR initiatives to enhance their reputation, attract investors, and comply with regulatory requirements. This paper examines the relationship between CSR and financial performance in renewable energy firms, analyzing whether firms that invest more in CSR initiatives experience better financial outcomes.

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Industry, Innovation, and Infrastructure
Mayara Shrotriya

AI and Automation: How they are reshaping job markets

The rapid advancement of artificial intelligence (AI) and automation is reshaping the global economy, driving efficiencies, reducing costs, and creating new opportunities for innovation. However, these technologies also disrupt traditional labor markets, raising concerns about job displacement, economic inequality, and ethical challenges. This article explores the economic implications of AI and automation across sectors such as agriculture, manufacturing, healthcare, IT, and entertainment, highlighting both their transformative potential and the challenges they present. By understanding these dynamics, we can better navigate the opportunities and risks of this technological revolution, ensuring its benefits are broadly shared and its challenges effectively managed.

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Climate Action
Abhilasha Sharma

Impact of Himalaya glacier retreat on hydrology of India

Impact of glacial retreat in Himalayas on Hydrology: A Comprehensive Review Often referred to as the “Third Pole,” the Himalaya and Hindu Kush, are the largest concentration of glaciers outside the polar regions. Himalayan glaciers are critical of freshwater in Asia, feeding major river systems like the Indus, Ganges, Brahmaputra, etc. Supporting about 1.9 to 2 billion people. With climate change and global climate change, growing rate of glacial retreat is becoming a major issue which is leads to major issues related to water and food security, river discharge change, underground water recharge, the risk of floods and droughts across the region (Bolch et al., 2012; Kulkarni et al., 2021). This literature review examines the hydrological impacts of Himalayan glacier retreat and explores its subsequent socio-economic implications. Glacier Retreat in the Himalayas Rising global temperatures has accelerated Himalayan glaciers retreat over the past few decades. According to studies up to 67% of Himalayan glaciers has been lost in last decade itself, and projections predict more paid decline with current temperature rise (King et al., 2021). Some recorded examples are Gangotri Glacier has been retreat at an average rate of 18.5 meters per year from 1963 to 2006 (Ramanathan, 2011) and Samudra Tapu Glacier receded by 862 meters during the same period (Kulkarni et al., 2007). The annual rate of glacial shrinkage in the Indian Himalayan region ranges from 0.2–0.7% for 11 river basins between 1960–2004, with a mean extent of 0.32–1.4 km² (Kulkarni et al., 2011; Bolch et al., 2012). The Himalayan glaciers are retreating at rates ranging from 10 to 60 meters per year, with many small glaciers already disappearing (Dasgupta & Sen, 2020). Satellite imagery shows the Zemu Glacier in Sikkim has significantly receded since 1935 (Singh, 2016). This trend is attributed to rising temperatures, reduced snowfall, and black carbon deposition that decreases the reflective capacity of ice, accelerating melt (Lee et al., 2021). The rate of glacier retreat is influenced by various factors , including rising temperatures, changes in precipitation patterns, and the deposition of black carbon, which reduces the albedo effect and accelerates melting. The rate of glacier retreat is not uniform across the Himalayas; it varies due to regional climatic conditions, glacier size, and topographical features. Research shows that smaller glaciers are retreating faster compared to larger ones due to their lower ice mass and surface area (Bolch et al., 2012). Hydrological Impacts  1. Variation in River Runoff Glacier melts significantly impact on the rivers water discharge originating from the Himalayas. Major rivers like Indus, Ganges, Brahmaputra etc are glacier-fed water, especially during dry seasons. Glacier retreat initially cause increase in river discharge due to accelerated melting, which raises the risk of floods and soil erosion (Immerzeel et al., 2010). But, with continued glacial retreat, there is reduction in river flow due to decreased discharge which leads to water availability for agriculture, drinking, and industrial use (Prakash, 2020).  Studies predict that the upper catchments of these rivers will experience an initial increase in streamflow due to accelerated melting, followed by a sharp decline as glacial storage is exhausted (Singh et al., 2013). For instance, the Indus Basin, heavily reliant on glacial melt, may see its water availability significantly impacted by mid-century (Lutz et al., 2014). Seasonal variations in runoff patterns are also becoming more pronounced. The shift from glacial to rainfall-dominated river systems can result in more erratic flow regimes, increasing the frequency of both floods and droughts. This has significant implications for water resource management, particularly in regions that depend on consistent river flows for irrigation and hydropower (Immerzeel et al., 2010). 2. Variability in Seasonal Flow Observed shift in period of peak flow from glacier to earlier period of the year , which was originally observed during summer months (Rasul & Molden, 2019). This has lead to decreased water availability during critical agricultural periods, affecting crop irrigation and also affects hydropower generation, during summers which is period of high energy demand (Pathak et al., 2017). This shift in seasonal flow patterns can lead to mismatches between water supply and agricultural demand. For example, earlier peak flows may coincide with periods when water demand for irrigation is low, while reduced flows during the actual growing season can negatively impact crop yields. Moreover, changes in flow timing affect aquatic ecosystems, disrupting the life cycles of fish and other aquatic organisms dependent on specific flow conditions (Pathak et al., 2017). 3. Groundwater Recharge Initial increase in river runoff assist in groundwater recharge especially during dry months , (Kulkarni et al., 2007). But as glaciers retreat, there is reduction in meltwater flow which leads to declining groundwater levels (Rasul & Molden, 2019). When this situation persists for long period it far reaching impacts. Groundwater systems are particularly vulnerable to changes in glacial meltwater input. In many Himalayan regions, groundwater serves as a critical buffer against seasonal water shortages. The decline in recharge rates due to reduced meltwater can lead to the over-extraction of groundwater resources, exacerbating water scarcity issues. Additionally, changes in groundwater recharge can affect water quality, as lower recharge rates reduce the dilution of pollutants (Rasul & Molden, 2019). 4. Glacial Lake Outburst Floods (GLOFs) Glacial lakes which are formed due loose moraine or ice left by glacier retreat that are highly vulnerable to sudden breaches, causing catastrophic Glacial Lake Outburst Floods (GLOFs) (Mool et al., 2001). GLOFs can lead to widespread flooding, causing the destruction on large scale. More than 32 GLOF events have been recorded in the Himalayas, with increasing frequency in recent years. (Dasgupta & Sen, 2020)  5.Floods and Droughts During period of initial glacier retreat due to high river discharge, risk of seasonal flooding increases particularly during monsoons (Immerzeel et al., 2010). But as glaciers continue to shrink, the long-term reduction in meltwater will lead to water scarcity and an increased risk of drought, particularly affecting agriculture and drinking water supplies (Prakash, 2020). 5. Sediment Transport and River Morphology Glacier retreat also changes the sediment transport dynamics. Initially, increased meltwater

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