research proposal on gig economy in india

Women Workers in the Gig Economy in India: An Exploratory Study

85 Pages Posted: 18 Oct 2021 Last revised: 29 Dec 2021

Anweshaa Ghosh

Institute of Social Studies Trust

Risha Ramachandran

Mubashira zaidi.

Date Written: May 1, 2021

While post-Fordism and neo-liberalism changed the way labour was viewed, technology and wide spread digitization has built upon the same principles, giving way to a new form of work – the Gig Economy. Over the last decade, ‘on-demand’ work guided by app-based platforms such as Uber, Ola, Urban Company, Zomato, etc. have become fairly common in urban India. These platforms have built upon the existing large informal economy fuelled by growing digitization and affordability of gadgets such as smartphones. Gig economy thrives upon the idea of ‘flexibility’, allowing people to work as ‘independent contractors’ who have the ‘choice’ of working when they want to, how they want to and where they want to.

Keywords: Gig Economy, Women Workers in India, Informal Economy

JEL Classification: J22

Suggested Citation: Suggested Citation

Anweshaa Ghosh (Contact Author)

Institute of social studies trust ( email ).

U.G. Floor, Core 6A India Habitat Centre Lodhi Road, New Delhi New Delhi, DE Delhi 110003 India

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Gig Economy in India: Current Status, Classification, Benefits, and Regulatory Frameworks

This Article is based on the news “ Unstable platforms ” which was published in the Business Standard. A recent survey conducted across multiple Indian cities, titled “Prisoners on Wheels” , sheds light on the challenges faced by over 10,000 cab drivers and delivery persons.

Survey on the Gig Economy in India

• Conducted by : The study is jointly conducted by the University of Pennsylvania and Indian Federation of App-based Transport Workers .
• 78% of the respondents were in the age group of 21 to 40 years .
• The survey revealed a picture of overwork, financial struggle, caste discrimination, and arbitrary work cultures.

Key Findings of the Survey on the Gig Economy in India

Low Pay, Long Hours: 

• They pointed out that despite working more than 10 hours a day , drivers and delivery persons cannot get full-time employee status or job security.  

No Weekly Off: 

• This lack of work-life balance translates into limited time spent with family (67% for cab drivers and 65% for delivery personnel).

Dissatisfaction with Fares: 

• Nearly a third of the respondents reported that companies are deducting between 31 and 40 per cent of commission rate per ride , while the officially claimed figure by the companies themselves is 20 percent.

Expenses Exceed Earnings: 

• 68% of cab drivers’ responses show that their overall expenses exceed their earnings .

Social Disparities:  

• These income disparities further exacerbate the already existing social inequalities and perpetuate cycles of poverty and distress within these communities.

Physical Exhaustion and Road Safety Risks: 

• This is especially due to the ‘10-minute delivery at the doorstep’ policy of certain e-commerce platforms which is completely unacceptable to around 86 per cent of delivery personnels.

Deteriorating Health:  

• 98.5 percent respondents reported one or more mental health issues as a result of this work, including anxiety, stress, panic, irritability, short-temperedness and panic attacks.

Violence at Work: 

• Nearly half of the cab drivers (47.1%) and over 41% of delivery personnel reported experiencing violence at work.

About Gig Economy

• A gig economy is a labor market that relies on independent contractors and freelancers rather than full-time permanent employees.
• freelancers who get paid per task;
• independent contractors who perform work and get paid on a contract-to-contract basis;
• project-based workers who get paid by the project;
• temporary hires who are employed for a fixed amount of time; and
• part-time workers who work less than full-time hours.

Classification of Gig Economy:

• Platform-Based: They use online apps or digital platforms to find and perform work, such as ride-hailing, food delivery, e-commerce, online freelancing, etc. 
• Non-platform-based gig workers: They work outside the traditional employer-employee relationship, such as casual wage workers and own-account workers in sectors like construction, domestic work, agriculture, etc.

Benefits of Gig Economy:

• For Workers: Gig economy can provide more flexibility, autonomy, income opportunities, skill development, and inclusion. 
• For Employers: It can enable access to a large and diverse pool of talent, lower fixed costs, higher scalability, and better customer satisfaction. 
• For Customers: It can offer more choice, convenience, quality, and affordability.

Gig Economy in India

• About 47 percent of the gig work is in medium-skilled jobs, about 22 percent in high skilled, and about 31 percent in low-skilled jobs
• CAGR: The Associated Chambers of Commerce and Industry (ASSOCHAM) reports that India’s gig economy is growing at a Compound annual growth rate (CAGR)  of 17 per cent annually.
• Growth Prospects: India’s vast talent pool of over 100 million unemployed individuals offers a compelling opportunity as businesses seek cost optimisation and enhanced productivity.
• It can help in realising the demographic dividend with 960 million potential workers.
• Examples in India: Online platforms like Ola, Uber, Swiggy, Zomato, etc.

Gig Economy Regulatory Framework in India

Central legislation: .

• Code on Wages, 2019: A universal minimum wage and floor wage should be provided to all organized and unorganized sectors, including gig workers.
• It has not been implemented as the government has yet to frame the rules.
• Dedicated Social Security Fund: It extends social Security benefits to gig workers.
• To curb excessive working hours of gig workers, the guidelines recommended that each driver should not be logged in for more than 12 hours in a calendar day including all aggregators apps they are integrated with. 
• A break of 10 hours was mandatory if workers are logged in for 12 hours. 

Rajasthan Platform Based Gig Workers (Registration and Welfare) Act 2023: 

• State government grants and contributions by gig workers will also be pooled into the fund.

Karnataka Gig Workers (Conditions of Service and Welfare) Bill, 2024:  

• It identified certain gaps in Rajasthan Platform Based Gig Workers (Registration and Welfare) Act 2023 such as ensuring income security, imposing penalties on aggregators, and making aggregators accountable for the occupational safety and health of workers , among others. 
• It is planning to have a provision for charging aggregators gig workers’ welfare fee , which will be a percentage of the pay of the gig worker per transaction.

Concerns Associated with Gig Economy in India

• Increase in Voluntary Unemployment:  It has led to an increase in voluntary unemployment as some workers prefer the flexibility and autonomy of gig work over traditional employment.
• It often means that workers have to make themselves available any time gigs come up, regardless of their other needs, and must always be on the hunt for the next gig.
• Job Insecurity: Gig workers in India often lack job security , as they are typically engaged on a project or assignment basis, rather than as permanent employees.
• Lack of Formalization: Many gig workers in India operate in the informal sector , which can limit their ability to access credit, government support programs, and other resources.
• Gig workers in India do not have access to social security benefits such as health insurance, retirement benefits, and paid leave.
• Unequal Bargaining Power: Gig workers in India may lack the bargaining power to negotiate fair compensation and working conditions , particularly when they are competing against a large pool of other workers on digital platforms.
• Training and Upskilling: Many gig workers in India lack the necessary skills to perform their work effectively. Gig workers often have limited opportunities for upskilling and career advancement.
• Social Stigma: Gig work is still viewed by some in India as a temporary or low-paying option, which can result in social stigma and lack of recognition for the work done by gig workers.
• Payments, Incentives, and Growth Models: Absence of a minimum wage guarantee makes workers susceptible to financial vagaries during crises/disasters.

Way Forward Suggested by the Survey On 

Overtime payment beyond regular hours: .

• Considering the physically intense nature of this work, the number of hours that are ‘regular’ hours needs to be stipulated beyond which the platform must pay overtime.

Payment of Minimum Wages to Platform workers:  

• They must be given daily assured earnings equivalent to the state minimum wage , insurance, and security benefits, apart from putting a cap on their working hours and the mandatory registration of the workers in government records.

Preserving Flexibility of Work for Gig Workers in India: 

• The choice of participating in social security should be voluntary for gig workers . They should be able to decide if their work is a short-term or long-term commitment, and whether or not to sign up for social security.
• Paid time-off or “unpaid” leave options shouldnt affect the eligibility of these workers. They should be allowed to adjust schedules within parameters to accommodate personal needs . This fosters well-being and avoids burnout.

Stronger Social Security for App-based Workers: 

• It is important that the apps function transparently in terms of algorithms, incentive systems, and payment mechanisms.
• Aggregators are required to take responsibility for their gig workers and portability of benefits like social security, health insurance of these informal workers should be ensured.
• According to The Code on Social Security 2020, an a ggregator means a digital intermediary or a market place for a buyer or user of a service to connect with the seller or the service provider.

Welfare Board for Gig Workers in India: 

• The provision for auto-registration of workers with the board is important as workers often don’t know about it.

Addressing Occupational Health Hazards: 

• Giving essential safety training, especially for roles with inherent risks, and safety equipment and resources can go a long way in encouraging temporary workers. 

• Sharing information on work-related injury can boost morale.

Addressing Mental Health: 

• Partnering with relevant organisations can help them give discounted services to gig workers. 
• Leaders should also encourage open and honest conversations about mental healt h and support seeking, and normalise the importance of work-life balance and taking breaks.

As the debate on gig workers in India’ welfare intensifies, governments must craft a robust framework that imposes conditions to access social security, while retaining the hallmarks of the gig economy— flexibility and choice.

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Gig Economy in India: Drivers, Challenges & Road Ahead – Dr. Pooja Nagpal

15 May, 2023.

The gig economy, also known as the on-demand economy, is a rapidly growing trend in India. It refers to a labor market where temporary, short-term, or freelance jobs are the norm instead of the traditional nine-to-five office jobs. The blog focuses on drivers, challenges and road ahead of gig economy in India.

The gig workers can be classified as platform and non-platform gig workers.  

Platform workers using digital platforms for their work.  Some examples

• Ride-hailing services: Companies like Uber, Ola, and Rapido.
• Food delivery services: Companies like Swiggy, Zomato, and Uber Eats
• Home services: Companies like Urban Company, Housejoy, and Taskbob
• E-commerce: Companies like Amazon and Flipkart.

Non-platform gig workers work part-time or full-time in traditional sectors as casual wage workers or own-account workers.

• Construction Worker
•  Delivery Boys (not working through online apps)
•  Home-based Workers (such as handicrafts, tailoring, etc.)
• Domestic Workers (maids, cooks, etc.)
• Street Vendors
• Farm Labourers

Drivers of the gig economy in India

The drivers of the gig economy are factors that contribute to the growth and development of non-traditional work arrangements, where individuals work as independent contractors or freelancers, rather than as employees of a single company. The gig economy in India is fuelled by various factors some are stated below:

• Young demographic dividend: India has a large and growing population of young people who are well-educated and tech-savvy. Many millennials value flexibility and work-life balance and are drawn to the gig economy because of the opportunities it provides.
• Technology: The advent of smartphones, high-speed internet, digital platforms and technologies, enable work to be performed remotely and independently has been a key driver of the gig economy. These platforms provide gig workers with a way to connect with customers and clients and offer their services on a flexible basis.
• Rising levels of education and skills: As more people in India attain higher levels of education and develop specialized skills, they are increasingly seeking out opportunities to apply their knowledge and expertise through gig work.
• Urbanization and rising consumer demand: Rapid urbanization in India is making middle class to continues grow, has created a large demand for gig workers in various sectors such as transportation, delivery, home services, and e-commerce.
• Cost-effective labor: For businesses, gig workers can be a cost-effective alternative to traditional employees, as they can be hired on a project-by-project basis, without the need to provide benefits or other forms of compensation.
• Flexible Work Arrangements: The young youth prefer flexi work hours especially post Covid. Gig workers have the ability to set their own schedules and choose the types of projects they want to work on, which can be particularly appealing to those who value work-life balance over traditional employment arrangements.
• Entrepreneurship: The gig economy has also given rise to a new breed of entrepreneurs who use digital platforms to start their own businesses and offer their services to customers around the world.
• Supportive government policies: The Indian government has been supportive of the gig economy and has taken several initiatives to promote it, such as the Digital India program, Start-up India, and Skill India.

Overall, the gig economy in India is being driven by a combination of technological, social, and economic factors, and is expected to continue to grow in the coming years.

Challenges faced by gig workers in India

While the gig economy in India has many potential benefits, it also faces several challenges. Some of the key challenges of the gig economy in India are:

• Job insecurity: Gig workers in India often lack job security, as they are typically engaged on a project or assignment basis, rather than as permanent employees. This can lead to financial instability and make it difficult for workers to plan for the future.
• Income instability: Gig workers in India may experience fluctuations in income due to the irregular and unpredictable nature of gig work. This can make it difficult for them to meet their financial obligations and plan for the future.
• Lack of formalization: Many gig workers in India operate in the informal sector, which can limit their ability to access credit, government support programs, and other resources.
• Lack of legal protection & social security: Gig workers are not covered under India’s labor laws and do not have legal protection in case of workplace harassment, discrimination, or unfair termination. Gig workers do not have access to social security benefits such as health insurance, retirement benefits, and paid leave.
• Unequal bargaining power: Gig workers in India may lack the bargaining power to negotiate fair compensation and working conditions, particularly when they are competing against a large pool of other workers on digital platforms.
• Payment issues: Delayed or non-payment of wages is a major issue for gig workers. The government needs to establish mechanisms for ensuring that gig workers are paid on time and that they are able to resolve payment disputes quickly.
• Training and upskilling: Many gig workers lack the necessary skills to perform their work effectively. Gig workers often have limited opportunities for upskilling and career advancement.
• Social stigma: Gig work is still viewed by some in India as a temporary or low-paying option, which can result in social stigma and lack of recognition for the work done by gig workers.

Overall, these challenges can make it difficult for gig workers in India to maintain financial stability and plan for their future, despite the growing demand for gig work in the country.

Road Ahead of Gig Economy in India

The gig economy in India is expected to grow at a significant rate, and the statistics show that it has a promising future. According to a report by the International Labour Organization (ILO), India is the second-largest gig economy in the world, with around 56% of all gig workers in the Asia-Pacific region working in India. According to a report by Nasscom, the gig economy in India is expected to grow at a Compound Annual Growth Rate (CAGR) of 17% with 23.5 million gig workers and the growth projection of reaching a market size of $455 billion by 2023 are impressive figures. The gig economy is predicted to be a significant building block in achieving India’s aim to become a $5 trillion economy by 2025, the reports indicated. This would help in bridging the income and unemployment gap. The study conducted by Boston Consultancy Group (BCG) estimates that the Indian gig economy has the potential to create up to 90 million jobs in the non-farm sectors, which is about 30% of India’s workforce. The growth of the gig economy is expected to lead to efficiency and productivity gains, which can contribute up to 1.25% to India’s GDP. This indicates that the gig economy can have a significant impact on India’s economy by providing employment opportunities and boosting economic growth. The gig economy has already started to make an impact in various sectors, and with further growth and development, it has the potential to create a substantial positive impact on India’s economy diverse range of sectors and industries.

The increasing demand for gig workers and the rise in participation of gig workers, especially the youth and women indicate that the gig economy in India is gaining popularity. The top three sectors driving the gig economy in India are ride-hailing, e-commerce, and food delivery.  The government is also taking steps to address some of the challenges faced by gig workers. In 2020, the Ministry of Labour and Employment proposed a social security scheme for gig workers, which includes health and life insurance, disability coverage and also considering the introduction of a code of conduct for gig platforms to ensure fair treatment of workers. On March 2021, the government announced that it is working on a new set of rules to regulate the gig economy and provide legal protection to gig workers to ensure that gig workers are not exploited by platform companies. The GoI has launched several skill development initiatives to help gig workers acquire new skills and improve their employability like Pradhan Mantri Kaushal Vikas Yojana (PMKVY). The GoI has also launched several financial assistance schemes for gig workers who have been affected by the COVID-19 pandemic and lost their livelihood like Pradhan Mantri Garib Kalyan Yojana. These initiatives show that the GoI is taking the challenges faced by gig workers seriously and is working towards providing them with social security, legal protection, and better working conditions. Additionally, greater collaboration between the government, employers, and workers’ organizations is needed to ensure that gig workers are able to enjoy their rights and access the benefits they are entitled to. Though, there are still significant gaps in the protection provided to gig workers, and many workers remain vulnerable to exploitation and abuse. The future of the gig economy in India is bright, as the country is expected to see continued growth in the number of gig workers and the range of services they offer.

Concluding Thoughts

References:

• https://www.businesstoday.in/latest/economy/story/how-indias-gig-economy-is-shaping-up-thanks-to-startups-369840-2023-02-11
• https://www.niti.gov.in/sites/default/files/2022-06/Policy_Brief_India%27s_Booming_Gig_and_Platform_Economy_27062022.pdf
• https://www.financialexpress.com/education-2/indian-gig-workforce-to-witness-200-jump-by-2030-niti-aayog/2972631/

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The Economic Survey, placed in Parliament recently, emphasized the complex and uncertain impact of automation on workers and suggested that India invest in research to “steer the AI bandwagon towards shared prosperity.” The Survey’s lead author, India’s Chief Economic Advisor V. Anantha Nageswaran, highlighted the need for businesses to strike a balance between deploying capital and labour. He pointed out the lack of timely data on the absolute number of jobs created in various sectors, which hampers objective analysis of the labour market.

He stressed that while the present unemployment situation is influenced by multiple factors like the COVID-19 pandemic, it is essential to create conditions for faster growth of productive non-farm jobs. To cater to the rising workforce, the Indian economy needs to generate almost 78.51 lakh jobs annually in the non-farm sector. AI can play a pivotal role in achieving this target by revolutionizing various industries and creating new employment opportunities.

AI’s Potential to Drive Non-Farm Job Creation

AI’s integration into various sectors can significantly contribute to reaching the ambitious goal of generating 78 lakh non-farm jobs annually. The manufacturing sector, traditionally a robust job creator, has faced challenges in recent years. AI can revitalize this sector by enhancing productivity and fostering innovation. AI-driven automation can streamline production processes, reduce waste, and improve quality control, making Indian manufacturing more competitive globally.

This increased efficiency can lead to higher demand for skilled labour to manage and maintain AI systems, thus creating new job opportunities. In the services sector, AI can open up a plethora of employment avenues. For instance, AI can enhance customer service operations through chatbots and virtual assistants, requiring human oversight and continuous improvement. Moreover, AI-driven data analysis and cybersecurity solutions are burgeoning fields that necessitate a skilled workforce, thus generating numerous high-paying jobs.

The construction sector has seen a rise in prominence, driven by the government’s infrastructure push. AI can further bolster this trend by optimizing project management, predicting maintenance needs, and ensuring safety through real-time monitoring. While many construction jobs are currently informal and low-paid, the integration of AI can lead to the creation of more formal, higher-paid positions. For example, AI can assist in designing smart buildings and cities, which require specialized knowledge and skills, thereby offering better employment opportunities to the workforce transitioning from agriculture.

While creating non-farm jobs is critical, improving agricultural productivity remains equally important. AI can play a transformative role here, indirectly supporting the shift to non-farm employment by stabilizing rural incomes and encouraging diversification. AI-driven technologies such as precision agriculture can optimize farming practices, leading to higher yields and better resource management. Higher agricultural productivity can reduce the dependency on farming as the sole source of income, allowing rural workers to seek non-farm employment opportunities without risking their livelihoods.

The rise of agritech startups leveraging AI to offer innovative solutions like drone-based crop monitoring, automated irrigation systems, and AI-powered supply chain management can create new job roles in rural areas. These startups not only employ individuals directly but also generate demand for ancillary services, thereby fostering a supportive ecosystem for non-farm employment. The gig economy is projected to expand significantly, with gig workers expected to form 6.7% of the non-agricultural workforce by 2029-30. AI can facilitate this growth by providing platforms that connect gig workers with job opportunities, optimizing task allocation, and ensuring fair compensation. This can help absorb the rising workforce into flexible, diverse employment roles, contributing to the non-farm job creation target.

Strategies to Leverage AI for Job Creation To harness AI’s potential for job creation, the government must adopt a multifaceted approach. Establishing AI research centres and fostering public-private partnerships can spur innovation and create high-value jobs in research and development. The Rs. 10,372 crore investment in the IndiaAI Mission aims to create a high-end, scalable AI ecosystem. Continued investment in R&D is essential to drive innovation and maintain India’s competitive edge globally. Equipping the workforce with the necessary skills to thrive in an AI-driven economy is paramount.

The government should invest in comprehensive skill development programs that focus on AI literacy, coding, data analysis, and cybersecurity. Collaboration with educational institutions and industry leaders can ensure that training programs are aligned with market needs, thereby enhancing employability. Enhancing computational capacity is crucial to support the growing demands of AI.

The Union Cabinet’s allocation of Rs. 10,372 crores for the IndiaAI Mission, with nearly half designated for NVIDIA GPUs, is a step in the right direction. However, to meet rising demands, more resources are necessary. Boosting India’s computing infrastructure can support advanced AI applications and create jobs in tech development and maintenance. Implementing labour reforms that incentivize employers to adopt AI while safeguarding workers’ rights can create a conducive environment for job growth. Encouraging gig work and remote employment can also be beneficial, given the projected expansion of the gig workforce.

The new Labour Codes, once fully operationalized, can play a pivotal role in achieving this balance. Small and Medium Enterprises (SMEs) are the backbone of India’s economy. Facilitating the adoption of AI in SMEs can drive efficiency and innovation, leading to job creation. Government subsidies and tax incentives for AI adoption can encourage SMEs to integrate these technologies into their operations. Increased incentives for public-private partnerships are vital for making advanced AI solutions accessible to small and medium-sized enterprises (SMEs). These partnerships can help scale AI technologies and integrate them into national digital infrastructure initiatives, ensuring robust support for businesses adopting these technologies. Establishing clear regulatory frameworks to promote ethical AI use and protect consumer data is essential. These frameworks can build trust in AI technologies, encourage widespread adoption, and ensure that AI-driven job creation is sustainable and inclusive.

Conclusion AI holds immense potential to aid the government in achieving its goal of creating more non-farm jobs. By leveraging AI in manufacturing, services, and agriculture, and through strategic policy measures, India can pave the way for a prosperous future where technological advancement and job creation go hand in hand.

The path forward involves addressing skills gaps, promoting public-private partnerships, and ensuring robust regulatory frameworks to drive sustainable growth in the tech sector. Through these concerted efforts, AI can be a catalyst for non-farm job creation, contributing significantly to India’s economic development and social stability.

Yashawardhana, Research Fellow, India Foundation

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IT Professionals Protest Against The 14-Hour Work Day Proposal In Karnataka

The fundamental roadmap of labour rights does not permit extending working hours in any sector, but recent proposal of the Karnataka government to elongate working hours for IT employees in order to fight financial hazards and boost ‘growth’ does not match the human-right frameworks. In July, state labour minister Santosh Lad presented the controversial ‘Karnataka Shops and Commercial Establishments (Amendment) Bill, 2024′ that intends to eradicate limits on the standard measures and to stretch the 8-10-hour work day into a ’14-hours-a-day’ that would include 12 hours of work and 2 hours of breaks/overtime. 

Employees’ unions and women’s rights organisations have openly criticised the proposal, meanwhile, the IT professionals embarked on full-fledged protests.

Employees’ unions and women’s rights organisations have openly criticised the proposal, meanwhile, the IT professionals embarked on full-fledged protests. A mammoth horde of employees from the IT and ITES amassed in the freedom park of Bangalore to oppose this new outline, on the other hand the feminist clusters have been raising their voices to slam its negative impact on the women workforce. The general secretary of KITU (Karnataka State IT/ITeS Union), Suhas Adiga has underlined it as an ‘ inhumane ‘ decision that will help the IT companies to exploit their workers. Giving response to the proposal, AIITEU (All India IT & ITeS Employees’ Union) has demanded to limit the working hours and fix a minimum wage of Rs. 26,000 to ensure justice and to safeguard the human rights.

In a period when several organisations in developed countries  like  Australia, Austria, Denmark, France and Germany are boosting productivity with a 4-day work week (32-hours-a week), this proposal to gobble the rights of employees to beef-up alleged ‘productivity-rate’ can actually harm the efficiency of work and disrupt the peace and growth of a sector.  

Karnataka presents anti-human pleas: the corporate Idea of productivity is feudal and colonial

Back in 2023, Karnataka and Tamil Nadu were  slammed  for attempting to amend the ‘Factory Act Of 1948’ to attain legal permission for 12-hour work day. The governmental pleas are still trying to interpret their endeavours as a ‘tricky policy’ that will reinforce the Indian economy on the Chinese model. It’s noteworthy that the infamous ‘Foxconn theory’ of china signifies workers as useless and ‘interchangeable’ machine-parts who need external pressures and a leader to work mechanically for the benefit of country.

In January, 2024, NR Narayana Murthy, the Infosys co-founder also incited a massive hubbub by advising youngsters to work 70-hours per week. The ’14 hours a day’ in a ‘five-day working week’ also demands 70-hours on a weekly basis and can be perceived as a conspiracy theory of purchasing and mishandling cheap-labour from developing countries for capitalistic gain in the name of development.

The 14-hour work day is against humanitarian morals and an offense to the hallmarks of historic and worldwide struggles of the working class that evolved the concept of ‘888’; 8 hours for work, 8 hours for personal goals (recreation) and 8 hours for rest. This idea was first applied by the US Congress in 1868 and then leader and reformer Dr. BR Ambedkar brought this to India.

In January, 2024, NR Narayana Murthy, the Infosys co-founder also incited a massive hubbub by advising youngsters to work 70-hours per week.

Seeing humans as an ‘instrument’ and snatching their personal space is a mark of fascist, feudal and colonial inclination. However, the scheme is destructive to every employee of the IT sector but women who are already perceived as an ‘object’ by our patriarchal society can face utmost discrimination and brutal negative aftermaths, because due to unjustified gendered polarisation of domestic duties and in-house liabilities, the work-life balance becomes a ‘decisive scale’ for them.

Addressing the protestors in the freedom park on August 5, comrade Rashmi Choudhary, the vice president of KITU  said – ‘ 8-hour work days are not given for free. Our workers fought for their rights. Our workers died for their rights. Through their blood, soil and sacrifice we got this basic protection. ‘   Pointing towards PM Narendra Modi, she said- ‘ The capitalists want us to believe that we don’t deserve the rest and we don’t deserve a life outside the work .’

Long work hours can increase the exploitation of women workforce  

According to the Indian labour laws, 8 hours a day and 48 hours a week are considered standard. ‘The Factories Act 1948’, and the ‘Shop & Establishments Acts Of states’ allow 10-hour workday with work and intervals.

A  study of  CFA Institute reveals that the IT sector had a 30% female representation during 2021-22 which is a way more than the average female participation in the  other mainstream jobs. Meanwhile, In comparison to men women are also 10 times more indulged into domestic errands and caregiving. They spend more time on in-house duties, consequently such long working hours may mess-up their everyday schedules and snatch better work-opportunities.

14-hour work days can also be unbearable during menstruation due to period-pain and cramps. This proposal of the Karnataka government aims to replace the current 3-shift system with a 2-shift system, resulting in horrible work-pressures and zero time for self-care.

14-hour work days can also be unbearable during menstruation due to period-pain and cramps.

Indirectly, this will also limit women to the boundaries of home with excessive responsibilities because male members would not be able to participate in in-house chores after an exhausting day. Apart from this, working women won’t find required leisure to pursue other aspirations or humble personal goals.   

Inhumanely long work hours are not a right way to fight financial challenges

Behind such arbitrary governmental proposals to combat the poverty rate and unemployment, there are deep-seated imprints of British imperialism that economically exploited the Indian citizens for professional profit. In British India, the educational system and companies were designed to manufacture educated slaves. But now, as free citizens of a sovereign nation, we need to oppose such terrains.

An exhausted mind can’t produce good ideas and no sector can develop without fresh ideas and a democratic atmosphere. Women deserve equal pay and men are required to contribute equally in the household errands. Wellbeing of the employees is the best method to unleash and utilise their utmost potential without disturbing their personal life, boundaries and ‘me-time’.

According to the Household Consumption Expenditure Survey of 2024, 33.8% of Indian population spends only 100 rupees a day to survive. The presented 14-hour work day will only enlarge these economic gaps and close the possibilities for most of the women who are tied through domestic responsibilities. Less participation of women would also be a big damage to the progress and financial targets of a company. It would not eradicate employment, poverty and lack of resources but boost-up the current hazards through arbitrary, unequal, unfair and cruel treatment.  

It’s also not good from the health viewpoints. Around 55 hours per week or more can cause serious health hazards. The International Labour organisation along with WHO scrutinised 3,47, 000 cases of heart-diseases in 2016 that were a direct result of working for more than 55 hours. Lack of adequate sleep can also affect the physical and mental health of people through mild or hard outbursts of anxieties and other ailments.

Precisely, as the slogan declares, IT employees are ‘ not slaves and their voices must be heard. ‘ It’s a good sign that women are actively participating in the ongoing protests to raise slogans against capricious proposal of the Karnataka government. Workers are often exploited in India due to lax labour rules. We already require more clarity in the present-day labour laws to safeguard rights and the 14-hour work day can only worsen the situation.

Mariyam (she/her) has a thirst for journalistic and creative stories that consist of feminist, humanitarian, contemporary or artsy themes. She hails from a Political Science, English Literature academic background and an Urdu-Hindi crux.

For her, words are a visionary sovereignty to stand on and find the meaning of being while journalism is the only place where truth comes with utmost clarity, facts and data. When not weaving pointy narratives or poetic expressions, she loves mingling with cats or delving into photography, cinema, music, daydreaming and stargazing.

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Minnesota Stands Out for Its Moderately Progressive Tax Code

August 6, 2024

Carl Davis Research Director

Most state tax systems fall short of the public’s perception of fairness by charging the rich lower tax rates than everyone else. Minnesota is among a small group of states that has chosen a different path. In Who Pays? , our comprehensive study of state and local taxes, Minnesota stands apart from the pack with a moderately progressive tax system that asks slightly more of the rich than of low- and middle-income families.  

Recent reforms signed by Gov. Tim Walz, the Democratic Party’s presumptive Vice-Presidential nominee, have contributed to this reality. Our analysis shows that taxes on working-class families declined markedly over the last few years in Minnesota, while taxes on high-income people went up slightly over this same period.  

The most notable changes were signed into law by Gov. Walz in 2023 as part of a sweeping tax reform package. Some changes were temporary, like taxpayer rebate checks and expanded property tax credits. But the bill also included a host of important, permanent reforms.  

Chief among those was a new Child Tax Credit that is expected to slash child poverty in Minnesota by one-third, according to Columbia University’s Center on Poverty and Social Policy. The link between Child Tax Credits and child wellbeing is well established, as the financial security afforded by these credits is associated with improved child and maternal health, better educational achievement, and stronger future economic outcomes.  

Other tax cuts signed by Gov. Walz include expanded exemptions for Social Security income and for student loan forgiveness, plus an extension of the Child Care Tax Credit to newborn children.  

To help pay for these and other substantial tax cuts, the 2023 bill included a variety of well-targeted tax increases on high-income people and profitable corporations. Certain tax deductions claimed by high-income filers have been scaled back. Capital gains, dividends, and other investment income over $1 million per year is now subject to a modest 1 percent surtax. And multinational corporations reporting income overseas now face higher taxes as well, as the state opted to piggyback on a law written by Congressional Republicans targeting companies’ “low-taxed income.”  

While the Minnesota tax code is somewhat progressive, it is far from radical. The state has embraced practical, administrable reforms that have lowered taxes for working-class families, reduced child poverty, and addressed the public’s frustrations with the tax treatment of multinational companies and wealthy people. At the end of the day, Minnesota does better than most states in living up to what most people would consider to be a bare minimum standard of tax fairness: the idea that wealthy people should not pay lower tax rates than everyone else.  

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Second Trump presidency could rile global economic order, trigger trade and investment war ‘on steroids’

By Thomas Moller-Nielsen | Euractiv

06-08-2024 (updated: 07-08-2024 )

News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.

SHUTTERSTOCK/LEV RADIN

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A Donald Trump second term in the White House could severely fragment the global economic order and potentially trigger an economically disastrous trade war between the US and the EU, warn analysts.

Trump, who is locked in a tight electoral race with Democratic nominee and current Vice President Kamala Harris, has pledged to introduce tariffs of at least 60% on Chinese goods and 10% duties on imports from the rest of the world if re-elected as US president.

Such proposals raise fears that a second Trump term could be even more protectionist than his first – when he introduced tariffs on a range of goods including washing machines, solar panels, aluminium, and steel.

“Trump stands for radical ‘America First’ policies, and cares rather little about having an open transatlantic economic system,” Georg Riekeles, associate director at the European Policy Centre, told Euractiv.

“Under Trump, we are likely to see a trading and investment war on steroids.”

Riekeles added that Trump’s re-election would “entail and distribute huge losses of economic efficiency.”

“The green transition will become much more expensive, inflationary pressures could pick up again dramatically, and unemployment will rise as countries spiral towards protectionism,” he said.

Alicia García-Herrero, senior fellow at EU policy think-tank Bruegel, said that Trump’s choice of Ohio senator JD Vance as his running mate suggests that his protectionist stance is just as strong, or perhaps even stronger, than it was when he was president from 2017-2021.

A staunch critic of free trade, Vance has  repeatedly emphasised the “need to protect American industries” from global competition through “broad-based tariffs, especially on goods coming in from China.”

“If we had any doubt as to whether Trump was going to be a different Trump, a more appealing Trump for Europe, for whatever reason, I think by now we know,” García-Herrero told Euractiv.

García-Herrero noted that EU leaders would likely attempt to offset Trump and Vance’s isolationism by engaging in “frantic action” to forge deeper economic and research partnerships with other “like-minded partners” including the UK, Canada, Australia, South Korea and Japan.

Riekeles, meanwhile, noted that Trump’s re-election in November would cause China “to compete even harder for other markets and for influence and power in the world.”

“It’s going to be a fight for all the BRICS: for Brazil, for India, for South Africa, and so on. And it’s going to be a fight for the resource-rich countries and for the Global South,” he said.

“I think the world could divide much faster than we anticipate,” he added.

US-EU trade war risk ‘asymmetric’

Analysts pointed to at least two key ways in which Trump’s proposed tariffs could directly impact the European economy.

The first, they explained, is that the 60% tariff on Chinese imports could lead to many goods originally intended for the US market being redirected and “dumped” on Europe, thereby forcing Europe to enact protectionist measures of its own.

“I think industry after industry in Europe will run to national capitals and Brussels, saying: ‘You have to save us – with subsidies and trade protection,’” Riekeles said.

From that standpoint, the European Commission’s recent decision to introduce tariffs on China-made electric vehicles only represents a precursor to what lies ahead, he said.

Sander Tordoir, chief economist at the Centre for European Reform (CER), noted that Trump’s 10% tariff on global goods would especially affect Germany, the bloc’s largest economy, which is already reeling from a combination of weak demand and growing competition from China.

“10% is not a massive tariff, but it will definitely hurt German exports, in an era in which they’re already struggling,” he said.

Tordoir explained that, with the US having recently surpassed China as Germany’s top trading partner and with the EU as a whole currently running a trade surplus of more than €150 billion with the US, the risks of a US-EU trade war are “asymmetric”.

He also noted that US protectionism would only compound Germany’s difficulties in finding suitable export markets, given China’s increasing tendency to impede foreign firms’ access to its own economy.

“I would be very worried about that if I were running economic policy in Berlin, because it is really not that obvious where you can sell German capital goods, if the two largest economies of the world are no longer providing that kind of market access,” he added.

Playing on the US’s security leadership

Some analysts also noted that Trump could attempt to weaponise the US’s status as Europe’s security guarantor to influence the continent’s trade policy.

Tobias Gehrke, senior policy fellow at the European Council on Foreign Relations (ECFR), told Euractiv that Trump might be more inclined to use ‘sticks’ rather than ‘carrots’ to encourage European firms to reduce their dependency on China.

“Right now the US gives a lot of incentives for companies to behave a certain way, particularly in the Inflation Reduction Act, which basically says: ‘You cut out China, but in return you get money,'” he said, referring to the US initiative that provides more than a trillion dollars in tax credits and subsidies to encourage domestic green manufacturing.

“That’s a pretty costly agenda. I think you could very well imagine that a Republican administration could turn it around and just say: ‘You’ll get access restrictions to the US market unless you behave in a certain way and change your supply chain.’”

Trump’s policies could also boost Chinese efforts to “drive a wedge between” the EU and US relationship, Gehrke said, by encouraging Europe to seek greater economic cooperation with Beijing rather than Washington.

However, he noted that the EU’s security reliance on the US would likely be too strong for Beijing to successfully pull Europe away from Washington’s orbit.

“The dependence on US security guarantees and support over Ukraine are just too evident to everyone. And the risk of that being jeopardised is, I think, going to keep Europe economically aligned with the United States,” he said.

An inevitable world decoupling?

Many analysts also noted that the growing rivalry between the US and China means that Europe’s economic and trade policy will likely need to undergo major changes regardless of who wins the presidential elections in November.

“We’re going to have to find other ways to do things without the US or with less of the US,” said Bruegel’s García-Herrero.

“This is true even if Harris wins the elections, because this is all about China – and the rest of the world is going to pay the price of the US moving [away] from open access.”

Riekeles of the EPC similarly noted that the “overall direction of the world” would be the same under a Trump or Harris presidency – namely, towards greater geopolitical and economic fragmentation.

“We’re in a different era today. It is no longer about markets and prices: it’s about security and the strategic competition between the US and China. And this is going to drive the world’s decoupling much faster than we think.”

[Edited by Anna Brunetti/Rajnish Singh]

Read more with Euractiv

European, German industrial fatigue endures, cannot be blamed on 'energy anymore'

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• car tariffs
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• german economy
• German industry
• global economy
• protectionism
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