Gig Economy and Gig Workers

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Questions and Answers

What is the primary characteristic of a gig economy?

Permanent positions are common

Organizations contract with independent workers for short-term engagements (correct)

Jobs are only available in the service sector

Workers are employed full-time

What is the main issue faced by gig workers in the recent past?

Strike by Blinkit workers and protest by Zomato and Swiggy delivery riders (correct)

Lack of job security

Inadequate wages

Difficulty in finding gig work

What type of gig workers are engaged in part-time or full-time work in the conventional sector?

Platform Gig Workers

Freelance Workers

Non-Platform Gig Workers (correct)

Casual Workers

Which code provides for universal minimum wage and floor wage across organized and unorganized sectors, including gig workers?

Code on Wages, 2019 Signup and view all the answers

What is the main objective of the Code on Social Security 2020?

To protect gig workers' rights by giving them social security protections Signup and view all the answers

What type of gig workers are those whose work is based on online software, apps, or digital platforms?

Platform Gig Workers Signup and view all the answers

What is the expected market value of cross-border payments by 2030?

$290 trillion Signup and view all the answers

What is one of the significance of cross-border payments in globalization?

It enables participants to diversify their customer base Signup and view all the answers

What has been the growth rate of India's cross-border remittances since 2016?

8% CAGR Signup and view all the answers

What is the contribution of the travel and tourism industry to India's GDP in 2021?

$178 billion Signup and view all the answers

Which country has accepted UPI for cross-border payments?

UAE, Singapore, Mauritius, Nepal, and Bhutan Signup and view all the answers

What is the total FDI inflow received by India in FY 2023?

US$70.97 billion Signup and view all the answers

What is the objective of establishing an Investor Protection Fund (IPF)?

To protect the interests of participants of the Exchange Signup and view all the answers

What is a depository?

A financial institution or organization that accepts deposits and assists in buying and selling financial instruments Signup and view all the answers

What is the purpose of segregating the IPF funds?

To keep the funds immune from any liabilities of the stock exchange and depository Signup and view all the answers

What percentage of the listing fee received is contributed to the IPF?

1% Signup and view all the answers

What is another source of contribution to the IPF?

Penalty collected from Trading Members and listed companies Signup and view all the answers

How often should the stock exchanges and depositories conduct a review of the IPF?

Half-yearly Signup and view all the answers

What is the primary legislation governing Foreign Portfolio Investment (FPI) in India?

Foreign Exchange Management Act, 1999 Signup and view all the answers

Why might the FPI route be misused?

To circumvent the stipulations of Press Note 3 Signup and view all the answers

What is the purpose of the Consultation Paper released by SEBI on Foreign Portfolio Investors (FPIs)?

To mandate additional disclosures from identified high-risk FPIs Signup and view all the answers

What is regulated by SEBI under the SEBI (Foreign Portfolio Investors) Regulations, 2019?

Foreign Portfolio Investors (FPIs) Signup and view all the answers

What is recognised as an offence under the Securities Contracts (Regulation) Act, 1956?

Dabba trading Signup and view all the answers

What are the additional legislations governing FPI in India?

Prevention of Money Laundering Act, 2002 and Prevention of Money Laundering (Maintenance of Records Rules), 2005 Signup and view all the answers

What is the purpose of the World Trade Organization?

To facilitate trade negotiations and settle trade disputes Signup and view all the answers

What are the two main ways to settle a dispute in WTO?

Mutually agreed solution and Adjudication Signup and view all the answers

What is the role of the Appellate Body in WTO dispute settlement process?

To hear appeals against panel reports Signup and view all the answers

What happens when a party fails to implement the ruling in WTO dispute settlement process?

Countermeasures can be taken by the other party Signup and view all the answers

What is the commitment violated by India as per the WTO dispute settlement body?

Zero-tariff commitment under the Information Technology Agreement Signup and view all the answers

What is the current status of the Appellate Body?

It is impacted due to the USA blocking appointments Signup and view all the answers

Study Notes

Gig Economy Characteristics

Primary characteristic: Flexibility in work arrangements and reliance on short-term contracts or freelance jobs.
Main issue faced by gig workers recently: Lack of job security and benefits traditionally associated with full-time employment.

Types and Code Regulations

Part-time or full-time gig workers often engaged in traditional sectors are termed 'platform workers'.
The Code on Minimum Wages provides for a universal minimum wage and floor wage for organized and unorganized sectors, including gig workers.
The Code on Social Security 2020 aims to extend social security benefits to all categories of workers, including gig workers.

Cross-Border Payments

Gig workers associated with online software or apps are referred to as 'digital platform workers'.
Expected market value of cross-border payments by 2030 is anticipated to exceed significant figures.
Cross-border payments play a crucial role in globalization by facilitating international trade and investment.
Since 2016, India's cross-border remittances have grown at a notable rate, reflecting economic contributions from its diaspora.
The travel and tourism industry contributed around 5.19% to India's GDP in 2021.

International Financial Transactions

India has reached agreements to accept UPI for cross-border transactions, enhancing digital payment frameworks.
Total FDI inflow into India for FY 2023 reached impressive levels, indicating robust foreign investment confidence.

Investor Protection Framework

Objective of the Investor Protection Fund (IPF): To safeguard the interests of investors by providing compensation in case of financial losses due to defaults.
A depository is a financial institution that holds securities in electronic form for ease of settlement and trade.
Segregation of IPF funds ensures that investor funds are protected and used specifically for compensation.
Listing fees contribute a certain percentage to the IPF, ensuring a continuous funding source.
Another source of IPF funding includes interest generated from the investment of its resources.
Stock exchanges and depositories should review the IPF quarterly to ensure financial adequacy.

Foreign Portfolio Investment (FPI) Regulations

Primary legislation governing FPI in India: The Securities and Exchange Board of India Act.
FPI route may be misused due to regulatory loopholes that can facilitate tax evasion or parked funds.
The Consultation Paper released by SEBI on FPIs seeks to engage stakeholders in policy discussions and enhance regulatory frameworks.
SEBI regulates FPIs under the SEBI (Foreign Portfolio Investors) Regulations, 2019 to maintain market integrity.
Violations under the Securities Contracts (Regulation) Act, 1956 include engaging in insider trading or false disclosures.
Additional legislations governing FPI include the Companies Act and Income Tax Act.

World Trade Organization (WTO) Overview

Purpose: The WTO aims to regulate international trade and ensure smooth trade negotiations among member countries.
Dispute settlement in WTO is achieved through consultation or formal adjudication processes.
The Appellate Body reviews disputes and ensures that rulings align with WTO agreements.
If a party fails to comply with a ruling, they may face retaliatory measures or trade sanctions from affected parties.
India's commitment violated as per the WTO dispute settlement body encompasses trade practices and subsidy norms.
Current status of the Appellate Body is limited due to vacancies and operational challenges, affecting its dispute resolution capabilities.

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Test your knowledge on the gig economy and gig workers, including recent issues and protests by workers in the industry. Learn about the free market system and its implications on temporary positions and independent workers.