The Indian government has unveiled plans to provide identity cards and healthcare benefits to gig economy workers as part of its Union Budget 2025 initiatives, building on the country’s existing digital identity infrastructure that has already saved an estimated $40 billion through fraud prevention. The program will enable registration on the e-Shram portal and extend healthcare coverage through the Pradhan Mantri Jan Arogya Yojana scheme, using India’s robust digital authentication systems.
Finance Minister Nirmala Sitharaman announced that the initiative is expected to benefit approximately 1 crore gig workers, acknowledging their crucial role in the modern services economy. The provision of identity cards aims to formalize the profession while creating a structured framework for workers in the gig economy. The development supports India’s broader push toward digital transformation, including the expansion of the Aadhaar authentication system to enhance service delivery across both public and private sectors.
The healthcare benefits extension through PM Jan Arogya Yojana marks a significant development for the growing omnichannel retail ecosystem. “The combination of e-Shram ID cards and health coverage will strengthen last-mile delivery and digital commerce operations,” said Kumar Rajagopalan, CEO of the Retailers Association of India. The initiative is part of India’s ongoing efforts to integrate digital identity verification into various aspects of its economy and public services.
“Government-backed ID cards represent a crucial step in professionalizing the sector,” said Madhav Krishna, CEO and Founder of Vahan.ai, an AI-led recruitment platform for gig workers. “Governmental support for healthcare coverage will reduce the financial burden on e-commerce and quick commerce platforms while encouraging worker participation.” The implementation will build upon existing digital authentication infrastructure that has proven successful in other government initiatives.
Industry experts have indicated that while the healthcare benefits represent a positive step, additional measures could further enhance the gig economy ecosystem. “Implementing a detailed social security framework and improving access to income stability would provide additional support to gig workers,” said Sachin Alug, CEO of NLB Services. These recommendations reflect broader trends in digital identity and authentication, as organizations worldwide move toward more secure and comprehensive digital verification systems.
Sources: The New Indian Express, BHFS, CACCI, BHFS, IIM Sambalpur
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