In a strategic effort to drive inclusive employment across India, the Indian government partners with Swiggy to offer gig opportunities for urban youth in smaller towns. This move comes under the Ministry of Housing and Urban Affairs’ flagship Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM). Through this partnership, the government aims to bridge the employment gap in Tier 2 and Tier 3 cities by integrating Swiggy’s gig platform into its livelihood promotion agenda.
This collaboration is not just about food delivery jobs—it’s about empowering youth with flexible income options, especially in towns where formal employment remains scarce. With over 1700 cities covered under DAY-NULM and Swiggy’s reach expanding beyond metros, the partnership ensures grassroots-level impact. It aligns perfectly with India’s goal to formalize the gig economy while making tech-enabled platforms inclusive.
Swiggy’s CEO Rohit Kapoor emphasized how this will unlock access to livelihood for thousands who were otherwise excluded from mainstream opportunities. He added that the company would work closely with Urban Local Bodies (ULBs) to onboard potential gig workers and train them through digital modules.
In doing so, the Indian government becomes one of the first globally to formalize gig economy employment through a structured urban livelihood mission. It also underscores India’s intent to support startups like Swiggy in scaling their impact beyond profits.
For Swiggy, this strengthens its local delivery workforce in emerging markets. For the government, it’s a step towards sustainable employment creation. This public-private synergy not only aids digital India goals but also reshapes the very narrative of employment accessibility in small-town India.
1. Introduction to the Government-Swiggy Collaboration
1.1 A New Chapter for Urban Employment in India
On April 15, 2025, the Ministry of Housing and Urban Affairs made a strategic announcement that marked a turning point in India’s employment landscape. In a first-of-its-kind public-private collaboration, it officially tied up with Swiggy, one of India’s largest online platforms for on-demand services. This move wasn’t just about economic stimulus—it was about unlocking tech-powered livelihood access for India’s underserved cities.
1.2 Targeting the Untapped Potential of Tier 2 and Tier 3 Towns
The initiative is specifically designed to focus on Tier 2 and Tier 3 towns, which often lag behind in employment creation despite high aspirations among the youth. Through the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM), the collaboration ensures targeted engagement with unemployed urban residents, especially those who struggle with formal employment access.
2. Strategic Framework of the Partnership
2.1 How the Collaboration Works
Indian government partners with Swiggy to boost gig employment. Under this partnership, Swiggy will coordinate with Urban Local Bodies (ULBs) to identify, onboard, and train potential gig workers. The idea is to integrate interested individuals into Swiggy’s growing ecosystem of delivery partners. DAY-NULM will support awareness generation, initial orientation, and even help with digital literacy to make this transition smooth.
2.2 Swiggy’s Gig Platform as a Solution
Swiggy offers a hyperlocal delivery platform that fits well within the gig economy’s flexible nature. As more small-town users shift toward on-demand convenience, Swiggy’s need for reliable last-mile partners also grows. This partnership solves both the supply and demand puzzle—matching delivery workforce expansion with youth employment aspirations.
3. Why This Move Matters for the Gig Economy
3.1 Formalizing Informal Work
Gig work in India has largely been informal. But this partnership begins to formalize gig economy roles by involving the government in training, skilling, and standardizing access. The government’s support not only gives legitimacy but may also open up pathways for benefits, insurance, and recognition in the future.
3.2 Inclusivity at the Core
Swiggy and the Indian government are explicitly targeting youth from marginalized urban families. In doing so, they hope to address the socio-economic imbalances that often keep talent away from the digital economy. Flexibility, instant income, and proximity make gig roles accessible—even for those without advanced degrees.
4. Government’s Vision: Making Urban Livelihoods Digital
4.1 DAY-NULM’s Broader Mission
DAY-NULM is designed to uplift the urban poor through self-employment and skill development. Partnering with Swiggy expands its digital footprint, letting the mission touch newer domains like app-based delivery, local commerce, and home services.
4.2 Alignment with India’s Startup and Digital Economy Goals
The move fits within India’s larger ambition to support homegrown tech startups like Swiggy while boosting digital literacy and gig employment. It adds another layer to the government’s Startup India and Digital India initiatives by using private sector innovations to drive public impact.
5. Swiggy’s Take: Empowerment, Not Just Employment
5.1 Rohit Kapoor on the Partnership
Swiggy’s CEO Rohit Kapoor described the initiative as a way to “bring meaningful work to those who need it most.” He highlighted that flexible income opportunities could bring dignity, confidence, and economic independence to those with limited options.
5.2 Expanding the Swiggy Workforce
Indian government partners with Swiggy to boost gig employment. This partnership also supports Swiggy’s expansion in non-metro towns, where the brand is seeing rising demand but still struggles with delivery partner onboarding. With ULBs helping the onboarding and awareness process, this gap gets filled faster and more sustainably.
6. Impact Forecast: What This Means for India’s Labor Market
6.1 Projected Reach
Over 1700 cities and towns are already part of DAY-NULM. If each of these places can onboard even 100 Swiggy partners, India could see over 1.7 lakh new gig workers enter the organized digital economy within a year.
6.2 Reimagining Workforce Development
This initiative reimagines employment as a service—where flexibility, digital access, and local reach define the new-age workforce. It’s a blueprint that other platforms in logistics, home services, and e-commerce may soon follow.
7. Learnings for Startups and Entrepreneurs
7.1 Leverage Government Schemes for Scaling
This partnership shows that startups can grow not just through capital but through collaborations with government programs. Entrepreneurs should explore how their platforms can align with public welfare schemes for deeper impact.
7.2 Inclusive Growth Wins in the Long Term
Swiggy’s move into Tier 2 and Tier 3 towns through a government-backed employment framework highlights the value of inclusive scale. For startups, this is a lesson in building solutions that bridge gaps—not widen them.
7.3 Gig Economy Must Be Supported by Infrastructure
While flexible work is the future, success will depend on how startups invest in onboarding, skilling, and support systems. The Swiggy-DAY-NULM model offers a blueprint.
The Startups News Perspective
At The Startups News, we believe this landmark partnership between Swiggy and the Indian government showcases how startup innovation can blend with policy vision to reshape employment. It sets a powerful example for the future of gig work in India. With structured execution and scale, such models could redefine livelihoods in every corner of the country. For those tracking startup news today or exploring emerging tech-driven employment models, this is a case to watch closely.
