Finance Minister Proposes ID Cards for Gig Workers, UPI-Linked Credit Cards for Street Vendors

In her Budget speech today, Finance Minister Nirmala Sitharaman declared that her government will issue ID cards to gig workers. Gig workers will additionally have access to healthcare through a social security program. She mentioned that her administration will allocate funds for street vendors as well as online and urban laborers. Gig workers from online platforms will receive identity cards and be registered on the e-Shram portal.

The PM SVANidhi scheme will be revamped to include increased loans from banks, UPI-linked credit cards with a limit of Rs 30,000, and support for capacity building will be guaranteed. A committee made up of representatives from different stakeholders has been formed to propose a framework for delivering social security and welfare benefits to gig and platform workers.

The Ministry of Labour and Employment has released a notice for aggregators to register both themselves and the platform workers associated with them on the e-Shram portal.

For the first time, gig workers and platform workers have been defined in the Code on Social Security 2020, which has been passed by Parliament. The Code highlights social security and welfare provisions for gig and platform workers. It mandates the development of appropriate social security measures for these workers concerning life and disability coverage, accident insurance, health and maternity benefits, and old age protection, among others.

In her budget address, she noted that Budget 2025 furthers the government’s initiatives to boost growth, promote inclusive development, encourage private sector investments, improve household sentiments, and increase the purchasing power of India’s growing middle class. The parliamentary budget session commenced on January 31 and is set to conclude on April 4 as planned. The budget speech detailed the government’s financial strategies, proposals for revenue and spending, tax reforms, and other important announcements.

Through this Budget Presentation, Sitharaman has delivered her eighth budget. The Economic Survey 2024-25, presented in Parliament on Friday, indicated that India’s economy is expected to expand by 6.3 percent to 6.8 percent in the upcoming financial year 2025-26.

In a separate important recommendation, the Economic Survey indicated that India must aim for approximately 8 per cent growth over a span of one or two decades to fulfill its Viksit Bharat aspirations, especially as the nation’s growth displayed sluggish advancement in the initial two quarters of the ongoing financial year.