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12h ago

India’s Flexi Workforce Seen Reaching 9.16 Million by FY27 as ISF Seeks GST Cut to 5%

ISF argues the 18% levy on staffing conflicts with 5% output rates, threatening recent gains in formalisation.

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Overview

  • In FY25, 72 lakh workers were on tripartite contracts, with ISF projecting workforce penetration to rise to about 1.6% by FY27.
  • The industry generated roughly Rs 1.9 lakh crore in FY25 and is forecast to reach about Rs 2.58 lakh crore by FY27.
  • Nearly 55% of formal contract roles are concentrated in Maharashtra, Karnataka, Uttar Pradesh, Tamil Nadu and Telangana.
  • Logistics, BFSI and manufacturing together account for about 38% of formal deployments, with e-commerce driving recent hiring growth.
  • ISF says a GST rate inversion strains client cash flows despite input tax credit and has raised its 5% rate plea with the Union Finance Ministry and state governments.