The gig economy, distinguished by flexible, short-term, and freelance work facilitated through digital platforms, has significantly transformed the employment landscape in India. This study provides a inclusive overview of the living conditions, driving factors, impact, and regulatory challenges of the gig economy in the Indian context. The gig economy offers workers flexibility, independence, and skill development opportunities, but also presents challenges such as job insecurity, lack of benefits, and economic vulnerability. For businesses, it provides cost-effective labour and equipped flexibility while posing challenges in workforce management and retention. This study highlights important policy challenges, emphasizing the need for comprehensive frameworks to protect worker rights, address gender inequalities, and ensure fair treatment. The nonappearance of adequate social security measures and the precarious nature of gig work underscore the urgency of policy interventions. The future route of India’s gig economy depends on balancing its growth potential with worker welfare, which requires collaborative efforts between policymakers, platforms, and stakeholders to develop complete policies. While the gig economy offers considerable opportunities for employment generation and economic growth in India, it requires careful regulation and policy formulation to ensure reasonable and sustainable development.