INDIA Trends and Developments Contributed by: Pooja Ramchandani, Kriti Kaushik, Suruchi Kumar and Suryansh Gupta, Shardul Amarchand Mangaldas & Co.
The Apex Court acknowledged the need for regulated entities, whether public or private, involved in financial services to implement sophisticated technologies and methodologies with a view to protecting money and preventing laundering or financial frauds. However, in the endeavour to implement such sophisticated technologies, reasonable accommodation needs to be made in order to enable sections of society that are unable to understand or access these technolo - gies, commencing with the sensitisation and training of employees and officials involved in providing such services. The laws and the recent judicial pronouncement underline the need for continued focus for establish - ments on diversity and inclusion initiatives in spirit and not just in letter. Companies in India involved in finan - cial services will need to conduct prompt audits of their standard operating procedures and accessibility features (physical and digital), modify their working environment to be more accessible, train and sensitise employees, and undertake policy changes in order to comply with the directives of the Apex Court, and this is just to begin with. The Rising Indian Gig Economy: Key Regulatory Response India’s labour market is undergoing significant trans - formation, marked by the rapid expansion of short- term, flexible and task-based work arrangements, ie, ‘gig’ work. The gig economy has taken centre stage. Gig work’s popularity today has been increasingly facilitated through the rise of digital platforms that seamlessly connect freelance workers with consum - ers or businesses, resulting in a subsection commonly known as platform-based gig workers. Several inter - related factors – including a shortfall in the demand and supply for traditional employment structures, improved and affordable digital connectivity, a press - ing need for supplementary income avenues, minimal infrastructure requirements and the rise of on-demand services – have contributed to the explosive growth of India’s platform-based gig economy. Another key driver is the booming start-up ecosys - tem and the rapid rise of e-commerce, which has increased the demand for a flexible, task-based work - force that can be easily scaled up and down across
sectors such as ride-hailing, delivery, logistics and home services. Initially concentrated in cities such as Delhi, Mumbai and Bengaluru, platform-based gig work and quick-commerce services are now gaining traction in Tier 2 and Tier 3 cities, broadening access to flexible income-generating opportunities and on- demand services across the country. While logistics and e-commerce continue to dominate the platform- based gig economy, the sector’s early focus on ride- hailing and food delivery has increasingly diversified into areas such as home services, content writing and graphic design, demonstrating the adaptability of the gig work model to cater to evolving consumer needs. Recognising the sector’s significance, both central and state governments have introduced regulatory frameworks and welfare initiatives. The Code on Social Security, 2020 (“SS Code”) represents a land - mark reform, providing social security coverage for gig and platform workers. The SS Code introduces dis - tinct definitions for ‘gig’ and ‘platform’ workers, man - dates their registration for access to social security benefits, and provides for dedicated welfare schemes to be formulated for their benefit and protection. States including Karnataka, Rajasthan, Bihar, Telan - gana and Jharkhand have also proactively introduced dedicated legislation and bills with additional protec - tions aimed at securing the welfare and social security rights of platform-based gig workers at state level. These protections include dedicated welfare funds, robust grievance mechanisms, fair contracts, work allocation transparency and the right to refuse work. The State Government of Tamil Nadu, on the other hand, has extended coverage to and integrated gig workers under its existing legal framework for manual workers in the state. In addition to legislative reforms, states have also introduced practical support initia - tives such as insurance schemes and rest stops with basic amenities for delivery personnel. Further, the Union Budget 2025–26 has introduced provisions for the registration of online platform work - ers on the e-Shram portal, the issuance of identity cards, and healthcare coverage under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana. A pilot ini - tiative has already been undertaken by the Ministry of Labour & Employment to register platform work -
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