The southern Indian state of Tamil Nadu will provide a subsidy of Rs. 20,000 to selected gig workers for the purchase of e-scooters, a minister announced on Friday. This initiative comes as an increasing number of young people are joining online platforms to deliver food and groceries.
Gig workers, who operate outside traditional employer-employee arrangements, are becoming a crucial part of India’s fifth-largest economy. This trend has been partly driven by high unemployment rates following the COVID-19 pandemic, which accelerated growth in this sector.
In addition to the e-scooter subsidy, Tamil Nadu is also rolling out an insurance scheme for approximately 150,000 gig workers to provide compensation in cases of accidental death or disability. Finance Minister Thangam Thenarasu revealed these plans while presenting the state budget.
"A new scheme will be launched to offer a subsidy of Rs. 20,000 each to 2,000 internet-based service workers for purchasing new e-scooters," the minister stated. He added that workers registered with a state welfare body would be eligible for this benefit. Further details about the scheme will be announced later, according to Labour Secretary Veera Raghava Rao, who spoke to Reuters.
E-scooters from Ola, a leading electric scooter manufacturer, start at Rs. 79,999, while those from competitor Ather begin at Rs. 99,999.
The state government also plans to establish lounges for gig workers in major cities like Chennai, the capital, and Coimbatore, a prominent textile hub. These lounges will provide a respite for workers, especially given Chennai’s scorching summer temperatures, which often exceed 40 degrees Celsius (104 degrees Fahrenheit).
K.C. Gopikumar, head of the Tamil Nadu Food and Allied Products Delivery Workers Union, welcomed the subsidy and welfare initiatives but urged the government to extend these benefits to more workers. He also called for improved working conditions, such as paid leave.
Swiggy and Zomato, two of India’s largest food delivery platforms, did not immediately respond to requests for comment.
© Thomson Reuters 2025
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