Caring for Gig workers, plans for GCCs

Recognising that a large section of urban workers who make valuable contributions to the economy but who are also vulnerable to economic and health shocks, the Budget outlines a comprehensive plan for Gig workers while also announcing measures for the medium and small enterprises that engage this section.

Finance minister Nirmal Sitharaman said “Gig workers of online platforms provide great dynamism to the new age services economy. Recognising their contribution, our government will arrange for their identity cards and registration on the e-Shram portal. They will be provided healthcare under PM Jan Arogya Yojana. This measure is likely to assist nearly 1 crore gig-workers.”

The health support is a crucial measure as many such workers are exposed to the outdoors and need protection for themselves and their families.

In an overdue announcement the Budget takes purposeful steps towards managing India’s chaotic urbanisation by encouraging states and city municipalities to consider measures to provide reliable and sustainable facilities. “The Government will set up an Urban Challenge Fund of Rs 1 lakh crore to implement the proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’ announced in the July Budget,” the finance minister said.

The Budget draws a path for India’s energy transition making the development of at least 100 GW of nuclear energy by 2047 an essential part of the national plan. In what will be another transformative act, the government envisages a role for the private sector in what has been regarded as a strategic sector. “For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up,” the minister said. The changes in India’s civil liability could remove the hurdles posed by laws and regulations that retard foreign participation and might be relevant for nuclear business with the US.

The Budget reiterates the commitment of the July, 2024 Budget, and states that “A Nuclear Energy Mission for research and development of Small Modular Reactors (SMR) with an outlay of Rs 20,000 crore will be set up. At least 5 indigenously developed SMRs will be operationalized by 2033.”

In the last two years, Global Capacity Centres have burgeoned in India, employing an estimated 1.9 million people according to NASSCOM, and have totally altered India’s image as merely a back office. The 1,700 odd GCCs are adding value to the economy and sophistication to the financial, technological and research operations. “A national framework will be formulated as guidance to states for promoting GCCs in emerging tier 2 cities. This will suggest 16 measures for enhancing availability of talent and infrastructure, building byelaw reforms and mechanisms for collaboration with industry,” the minister said.

The high-level committee for regulatory reforms which will evaluate impact of the current financial regulations and subsidiary instructions is a major confidence boost that the Modi government is committed to de-regulation and elimination of red tape. The decision to retain only eight tariff rates including ‘zero’ rate is a step in this direction. The extension of the time-limit to file updated returns for any assessment year, from the current limit of two years, to four years, will also save needless bureaucratic work.

Civil LiabilityFinance Minister Nirmala SitharamanGCCsGig workersPM Jan Arogya Yojanasocial welfareUnion Budget 2025Urban Challenge Fund