India’s southern state of Tamil Nadu will offer a subsidy of 20,000 rupees ($230) to select gig workers to buy e-scooters, a minister said on Friday, as more young people sign up with online platforms to deliver food and groceries.
Gig workers, or those outside traditional employer-employee relationships, are set to play a key role in the world’s fifth-biggest economy, spurred partly by high unemployment after COVID-19 pandemic curbs fuelled growth in the sector.
Tamil Nadu is also introducing an insurance scheme for nearly 150,000 gig workers to compensate for accidental deaths and disability, its finance minister, Thangam Thenarasu, said while unveiling the budget.
“A new scheme will be launched …. to provide a subsidy of 20,000 rupees each to 2,000 internet-based service workers to buy a new e-scooter,” the minister said, adding that workers registered with a state welfare body would be eligible.