AI & the Rise of the Gig Economy

India is standing at the threshold of a middle-class crisis. According to a warning issued by Marcellus Investment Managers, nearly 20 million jobs in India are at risk over the next two to three years. The worst impact will be felt by those earning ₹2–5 lakh annually. Even companies that have built export capabilities over decades will be affected. This crisis is not driven by an economic slowdown, but by automation, artificial intelligence (AI), and disruptions in global trade. If policymakers fail to take urgent action, the consequences could be extremely severe.The number of salaried middle-class jobs is declining, while work is increasingly shifting toward the gig economy—an economic system where people rely on short-term, temporary, or project-based work instead of permanent employment.The traditional model of a “stable job” is under threat. At the same time, income instability and job insecurity among the middle class are rising.
Demand for new skills, flexible work arrangements, and new forms of employment will grow. Over the next two to three years, India is likely to become a vast gig economy. This shift will not be limited to ride-sharing or food delivery.
In the future, almost every family will have someone participating in the gig economy in some form. AI will undoubtedly transform work culture itself.