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Social cover. Instead of a region or income specific policy, a more universal approach would serve workers better.

While the demand for social security for platform workers heats up, the question that crops up is can one design an exclusive social security system for platform workers? And even if one could design it (like Rajasthan), should one design systems for particular groups of workers.

Isn’t a more universal system of social security more viable given the Indian context? The challenge of course is who pays for it!

The Code on Social Security, 2020 (CSS 2020) defines gig worker as a “person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship”.

 Gig classification

The NITI Aayog report states that “gig workers can be broadly classified into platform and non-platform-based workers. Non-platform gig workers are generally casual wageworkers and own-account workers in the conventional sectors, working part-time or full-time.

The Periodic Labour Force Survey 2020−21 data shows that only 18.6 per cent of workers aged 15 plus had paid leave or employer-provided social security cover and written contract of more than one year. This meant that around 80 per cent of workers would need social security cover.

The CSS 2020 defines “social security” as an all-encompassing measure including all types of workers — organised or unorganised, gig or traditional, who have access to health and income security during old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner etc.

There are several problems with designing social security only for platform-gig workers approach. First, non-platform gig workers are excluded. Second, it does not account for the non-linear lives that workers lead. Workers can work on two platforms simultaneously. Workers can work part-time on platforms. But that is true for non-platform workers too.

Previous work from NCAER based on the India Human Development Survey (2004-05and 2011-12) found that that workers employed in textiles and apparels were often involved in four different jobs in urban areas and six in rural areas.

Previous studies have highlighted the relatively lower social security coverage in urban areas during the pandemic and the differential factors affecting poverty.

The NCAER Business Expectations Survey of December 2021 found that 93 per cent of firms reported hiring temporary workers. 28.5 per cent of firms responded that they contributed to health insurance and 11.5 per cent said they contributed to some form of social security. 65 per cent of firms responded that they were not planning to convert any ‘permanent job’ into a temporary one in the next six months.

Basically, social security systems designed specifically for region, type of workers or time or income are likely to falter or have limited outreach. In this case, the first best solution is to design a more universal system.

In the CSS 2020 some provisions are not universal. For example, employees provident fund (EPF), employees state insurance, and gratuity are entirely for organised sector workers and unorganised workers do not enjoy such benefits.

Further, maternity benefits, which were earlier applicable to establishments hiring at least 10 workers, has not been amended.

Also, access to EPF and gratuity still has the minimum workers criterion and so even if they are universalised, still many unorganised enterprises workers will be left out of the system. This become evident from the fact that only 2.7 per cent of the 6.3 crore unincorporated enterprises in the country hired 10 or more workers (NSS Enterprise Survey 2015-16).

Social registry system

In that, first, we need a social registry system where people voluntarily sign in for social welfare. India has already done that in the form of e-Shram database. States are also designing their own social registries like Karnataka and Madhya Pradesh.

e-Shram workers, irrespective of their employment status or geography or any other criteria, should be provided with full health coverage. Health coverage needs to be in two forms — health insurance for secondary and tertiary healthcare and urban walk-in health clinics for primary healthcare. The latter should be financed by municipal funds.

The people registered on e-Shram should be given pensions. While everybody is given an inflation-indexed minimum standard pension, workers should be encouraged to contribute to pensions as they may deem fit to enhance their pensions. The existing schemes for temporary workers or any other relevant scheme/s can be merged and remodelled as deemed appropriate.

A third option could be that e-Shram workers are given unemployment benefits.

It must be ensured that there is neither double-dipping nor exclusion between systems. Unemployment insurance or re-skilling/upskilling opportunities for six months could be added as a third option too.

The last, but not the least, concern is who is going to finance this scheme. All registered companies must pay one per cent of their total annual turnover to each of these bodies — health insurance, pension and unemployment or two per cent to the overall social welfare body.

The government also contributes and so do the e-Shram registrants who are capable of paying. Contribution to these bodies in lieu of Corporate Social Responsibility funds may be made possible.

There needs to be a macro perspective to social welfare. We need to re-haul all ideas of work from a traditional employer-employee, factories/establishments approach to a more flexible one.

We need a more universal approach to social welfare, where everyone contributes to the best of their capability. We need dynamic policies which are in sync with each other. India certainly has the digital prowess to implement such a system.

Bhandari is a Professor and Sahu is an Associate Fellow at NCAER. Views expressed are personal.

In India Delhi’s Indira Gandhi International Airport can boast about being the first airport that has a “well planned, safe, smart and sustainable commercial district” adjacent to it that promotes work, play, world class cuisine, and entertainment to the travelers and socio-economic development to the airport community.

While going to and from the airport one can have a look at a well-planned boulevard with neat cross roads, pedestrian and bicycle-friendly paths for last-mile connectivity, and community without boundary walls thus allowing spaces to flow and merge with one another.

The IGIA airport has been the busiest in India since 2009 and as of 2022, it became the 7th busiest airport of the World, as per rankings by UK-based air consultancy firm, OAG. To better serve this national and international community several aeronautical as well as non-aeronautical infrastructural facilities and services were developed so that economic benefits can be reaped out of it. This gave rise to the first aerotropolis of India. Under the January 2006 agreement, the GMR-led consortium was awarded the concession to develop and operate Delhi’s Indira Gandhi International Airport for 30 years. Under this, some land was marked for undertaking commercial activities like hotels, malls, and convention centers. This later came to be called “Aerocity”.

Concept of “Aerotropolis”

The idea of Aerotropolis is credited to John D. Kasarda. However, the records mention that this concept was first presented in 1939, by New York based commercial architect Nicholas de Santis. He proposed a hypothetical airport in the city to establish an economic growth model by merging the airport with the surrounding metropolis based on time competitiveness and connection to the global economic network. According to Kasarda an urban economist and sociologist, “Airports are going to play a similar role in shaping the urban form in the 21st century just as highways did in the 20th century, railroads in the 19th century and seaports did in the 18th century.

He described Aerotropolis as a metropolitan sub-region whose infrastructure, land use, and economy are centered on an airport. According to him, a traditional metropolis was made up of a central city commercial core with its commuter-linked suburbs. However, an aerotropolis consists of a multimodal airport-based commercial core and outlying clusters of businesses and associated residential developments that feed off each other by accessibility to the airport. This 4th wave of transportation technology is based on the new dictum of “Survival of the Fastest”.

Impact of Aerotropolis on Regional Development

Many countries follow the Aerotropolis approach for developing the economy and finding solutions to unemployment and poverty in their respective countries.

Durban City which is a coastal city in South Africa’s Kwa-Zulu Natal province, implemented an aerotropolis strategy for creating growth and expansion of markets. This was achieved by creating global networks, facilitated by improved connectivity between Europe, Asia, the Middle East, and the rest of the world. Moreover, it gave rise to urbanization due to construction and infrastructural development in the areas previously called Greenfields. There has been a substantial increase in exports and imports. Due to improved connectivity, the number of businesses taking up retail and industrial spaces has increased. The provincial government predicted the creation of 750000 employment opportunities in the services and manufacturing sector.

Memphis-Shelby County Airport Authority published a report indicating a notable increase in the extent and volume of economic activity during 10 years (2005-15) because of an increase in total aircraft movement. It is due to the development of the aerotropolis, the Memphis Airport was able to establish itself as the logistics hub of America with its world-class warehouses and other accessory services.

The Incheon International Airport’s (ICN) airport city branded as “Air-City”, hosts several Grade-A office buildings, upscale retail and dining venues, 4-star and 5-star hotels, conference and exhibition centers, luxurious resorts, health and wellness complexes, golf courses and other recreational areas as well as logistics parks located in airport’s Free Trade Zone that contains cold-chain, e-commerce, and light manufacturing facilities. This generates not only substantial non-aeronautical revenue but also makes the airport a more attractive destination for business travelers, retail tourists, and affluent leisure travelers. The reason for the success of this airport city lies in its connectivity to other places. The ICN is connected through elaborate expressways, bridges, and tunnels to Seoul and nearby islands thus forming an expansive commercial and residential complex.

Thus, many cities in different parts of the world have gained tremendously by building up aerotropolis.

India’s Scenario

In the rapidly changing world, most people prefer air travel as it saves time. Many companies strategically want their offices in the vicinity of the airports so that travel time and logistic costs are reduced. Many businesses look for spaces where they can thrive, where there is easy interaction between the buyers and the sellers and footfall is more.

The airport developers understood that revenues generated from aeronautical services are limited and cannot be increased beyond a certain point. In contrast, the revenue generated from non-aeronautical services can be unlimited. This is why it is important to build infrastructure like retail shops, warehouses, hotels, malls, convention centers, etc. in and around airports.

Thus, both the consumer and supplier aspirations were answered by the development of the aerotropolis. These aerotropolis fulfilled the needs of the consumers and provided much-desired profits to the developers. Moreover, it also provided employment opportunities and finally contributed to the economic development of the area.

Thus, in the starting phase, 2 aerotropolis were conceived by the GMR-led consortium. One is located adjacent to Indira Gandhi International Airport, Delhi which is fully functional, and the other at Rajiv Gandhi International Airport, Hyderabad.

Factors Contributing to the Success of Aerocity, Delhi

But can the success of Aerocity at IGIA be attributed to airport infrastructure only or were there other factors that contributed to its success.

So, the creation of infrastructure adjacent to the airport is not sufficient rather its connectivity to other places of importance like commercial districts, places of historical importance, etc. The success of the Delhi Aerocity lies in a network of highways, metro, flyovers, etc. that connects it to different parts of India. From the aerocity, Delhi which is the National Capital Territory is easily accessible through metro or network of highways. It is well connected to Gurugram which is India’s second-largest information technology hub housing many domestic and international firm’s offices and third largest financial and banking hub. It is also home to one of India’s largest medical tourism industries. The Government of India is also finding solutions to connect IGIA with the upcoming airport at Jewar, to decongest the former.

So, it is the amalgamation of infrastructure and policy decisions that contributes to the success of an aerotropolis.

Way Forward

These Aerocities will soon transform into “Global Business Districts (GBDs)” because they provide locations with dense mixed-use development. It provides individuals and companies a platform where they can meet, exchange ideas, and innovate with the best global talents. These are not only economic multipliers but host and incubate the best of art, and culture, and offer the best of urban life. Since these districts are globally connected due to the airport as their core, they can become global powerhouses of innovation, economic boom, employment, and art & culture. Thus, giving rise to a new urban paradigm of GBDs.

Kaushik is Consultant at NCAER. Views are personal.

If menstrual leave is made compulsory, it would further discourage employers from hiring female employees, causing women’s participation in work to shrink further.

While the impact of the menstrual cycle varies for every female, the discomfort it brings may heavily affect their efficiency as workers. If a female employee already going through problems like PCOD or PCOS, work-related stress may make it even worse, which may eventually translate to more complex issues like infertility, diabetes, or even heart disease. Monthly paid menstrual leave may help them cope better at work and may bring in efficiency.
However, economic and societal pressure already work against wome. There is a risk that implementing paid menstrual leave might hinder rather than empower women, apart from likely impacting only a handful in the formal sector, and neglecting the majority in the informal and unorganised workforce.

Data from the Periodic Labour Force Survey (PLFS) highlights the post-Covid feminisation of agriculture, with over 85% employed in the unorganised sector where existing government rules are seldom adhered to. In the formal sector, women are notably underrepresented, encountering bias during hiring, leading to difficulties securing employment, which is why many women either accept lower-paying jobs or turn to care work.

Studies show that during economic distress, women are first in the line to lose jobs, the most distressing part of which is that when there are limited options to secure a job, men are perceived as better candidates. It is often seen that if two employees, with the same skill set and experience but of different genders, are candidates for a higher position, males are generally preferred as women are perceived to have household responsibilities that can impact their performance.

If the menstrual leave policy is enforced, it may further disincentivise employers to hire female employees owing to the additional burden of paid leave every month. Female employees are already burdened with care-work, wage gap, and underrepresentation; on top of that, employer bias against female employees would take a serious toll on female employment.

Japan, Spain, South Korea, Taiwan, Indonesia, and Zambia have adopted paid menstrual leave. Among these, Japan, Spain, South Korea, and Taiwan, belonging to the high-income group, might have faced different scenarios during implementation. On the other hand, Indonesia and Zambia are both from the Global South and in some respects similar to India.

In the cases of Indonesia and Zambia, discomfort linked to menstruation is evident, exacerbated by poor workplace hygiene and limited breaks during work shifts. Furthermore, there’s a prevailing doubt regarding whether workers taking leave actually get adequate rest, given the perception that household chores are ‘women’s responsibility’ persists.

Additionally, male counterparts might develop feelings of discontent if they suspect that female employees taking leave aren’t using it for rest. In Zambia, dissatisfaction among colleagues and employers arose when women on menstrual leave used this for personal matters instead of using it to cope with menstrual discomfort. This susceptibility can potentially lead to discrimination in the workplace. A mixed response to menstrual paid leave has been observed among the countries implementing this policy. It appears more beneficial for countries that are relatively affluent and have overcome social taboos associated with menstruation.

Certain Indian startups like Zomato, Swiggy, Byju’s, and Gozoop have adopted paid menstrual leave, positively addressing challenges related to women’s menstrual cycles. Encouraging other organisations to voluntarily adopt similar policies might be more effective than mandating it to all the organisations.

Nonetheless, the National Family Health Survey (NFHS) in India reflects a positive impact of the tax cut on sanitary pads announced on July 21, 2018 where GST on sanitary pads were reduced from 12% to 0%. It reveals a notable increase in women aged between 15 and 24 using hygienic menstrual sanitation products, rising from 57.6% to 77.3% between 2015-16 and 2019-21.

Moreover, there’s been a significant convergence between urban and rural women during this period. While in 2015-16, a considerable gap existed, with 48.2% of rural females aged 15 to 24 using hygienic methods compared to 77.5% of urban females, by 2019-21, this gap had significantly narrowed to 72.3% of rural females and 89.4% of urban females using hygienic methods.

Similar to the tax-cut policy, simpler interventions may play a more prominent role in addressing issues linked to menstruation. Mandating sanitary pads and tampon vending machines at workplaces and educational institutes may help female students and workers cope with their menstrual cycle. Comprehensive sex education, which covers menstrual cycle information, is crucial for both young girls and boys, especially in rural areas lacking menstrual sanitation facilities. Advocating the need for hygienic toilets would have a huge impact, helping more women and girls to attend work and education.

Furthermore, instead of obliging employers, the government could incentivise menstrual leave through tax exemptions for companies offering it or by introducing additional gender-neutral leave policies for all employees. Government aid, such as covering leave costs via Direct Benefit Transfer, could also be explored.

In the Indian context, menstrual paid leave may benefit only a minority of the female population in the short run and may have serious impact on female employment in the long run. To truly benefit from a menstrual paid leave policy, widespread awareness and the eradication of societal taboos associated with menstruation must be addressed.

Ravi Kumar Gupta, Research associate, National Council of Applied Economic Research

Views are personal