Create a custom practice set
Pick category, difficulty, number of questions, and time limit. Start instantly with your own quiz.
Generate QuizThe 'Gig Economy' in India, characterized by short-term contracts and freelance work via digital platforms, poses a significant challenge to traditional economic policy primarily because:
- Gig workers earn significantly more than formal sector employees, driving up inflation
- Gig workers operate outside the traditional employer-employee relationship, lacking access to formal social security, health insurance, and provident funds
- The gig economy is entirely unregulated and refuses to pay any form of indirect taxes like GST
- Gig platforms are exclusively owned by foreign monopolies that repatriate all profits
Answer: Gig workers operate outside the traditional employer-employee relationship, lacking access to formal social security, health insurance, and provident funds
While the gig economy offers immense flexibility and has created millions of livelihood opportunities, it fundamentally disrupts the post-WWII social contract. Because platform companies classify workers as 'independent partners' rather than employees, they are absolved of providing minimum wages, paid leave, or retirement benefits. This has prompted the government to draft new labor codes specifically aimed at extending social security nets to this massive, vulnerable unorganized workforce.