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India Today
7 days ago
- Automotive
- India Today
Traffic is choking Indian cities. But there may be a radical solution
Major Indian cities are now among the slowest in the world. Despite building more roads, traffic jams are getting longer — and deadlier. Some cities are beginning to consider congestion pricing, a policy tool used globally but never seriously tried in it matters: Urban Indians lose hundreds of hours a year just sitting in traffic, time that could go to work, rest, or family. The traffic crisis is also a public health emergency: even cities once thought to have clean air are now seeing spikes in pollution-related the cost is uneven. The car-owning elite clog roads while most Indians still rely on buses or walking. Without radical fixes like congestion pricing, cities could grind to a halt. In numbers117 hours: the time an average Bengaluru commuter lost in rush hour in 202434 minutes 33 seconds: the time it takes to travel 10 kilometres in Kolkata, the slowest city in India40: the number of cars per 1,000 people in India67 per cent: tier-2 city commuters relying on private vehicles1975: The year Singapore first introduced congestion pricing30 per cent: Traffic reduction in Singapore after three decades of pricingIn-depth: 'What the hell is happening?' one frustrated commuter asked, stuck for 10–15 minutes in unmoving traffic. It wasn't even peak hour. Just another day in a major city, where slowdowns, fumes, and frayed nerves are the new data agrees. TomTom's 2024 Traffic Index found Kolkata and Bengaluru among the world's worst cities for traffic. Delhi, Mumbai, and Chennai weren't far behind. But the real damage is invisible: hours lost, toxic air, and rising in places like Hyderabad, long thought to be relatively light in traffic, things are changing. Bengaluru residents now lose more than two full working weeks every year to congestion. Mumbai? Nearly 13 working days. And it's not just a metro problem. Jaipur commuters lost 82 hours in 2024. Smaller cities are catching up, and from Numbeo shows that commute times in Indian cities have barely improved, and in some cases, things are getting worse. Kolkata still has the longest average travel time, at nearly 60 minutes, over five years. Delhi, Mumbai, and Bengaluru haven't seen much change the inefficiency index tells a bigger story. It measures how much people rely on private vehicles instead of public transport. In cities like Bengaluru and Pune, the index jumped sharply in 2025 (as of April), pointing to growing car dependence. Even Hyderabad, once considered better managed, is seeing its score rise why: India has 34 cars per 1,000 people, a low number globally, but one that's rising fast. The real issue isn't just volume. It's who owns the cars. Urban roads are increasingly dominated by the privileged few, while public transport from PRICE's ICE360 survey reveals the imbalance: 67 per cent of tier-2 city commuters use private vehicles, compared to 51 per cent in metros. Public transport systems haven't kept pace. And the environment is paying the traffic burns more fuel and belches out more pollution. Studies show emissions at intersections in Indian cities can be up to 29 times higher than on free-flowing roads. PM2.5, NOx, VOCs — the alphabet soup of toxins — rise when traffic does.A first-of-its-kind multi-city study published in The Lancet Planetary Health reveals the deadly health toll of urban air pollution. Cities with the highest pollution loads also saw a larger share of deaths linked to Delhi, air pollution was responsible for 11.5 per cent of all annual deaths, the highest among cities studied. Bengaluru, by contrast, had lower pollution levels, yet still saw 4.8 per cent of deaths attributable to poor air quality. What's striking is that Bengaluru's residents were exposed to only 30 per cent of the daily air pollution levels that people in Delhi study highlights that even short-term spikes in pollution — the kind that traffic congestion often causes — can trigger serious health consequences across cities, regardless of their baseline pollution yet, there's little picture: Local governments have tried widening roads, building flyovers, and changing routes. It hasn't worked. That's why some are turning to a once-radical idea: congestion this system, drivers pay a fee to enter high-traffic zones, especially during peak hours. The idea is simple. If road space is limited, those who use it should pay. And that money can fund better buses, trains, and cycling concept isn't new. Singapore began charging drivers in its central business district in 1975. Today, it runs a dynamic, camera-based pricing system that adjusts tolls by hour and demand. Traffic is down by over 30 per cent. London introduced its own scheme in 2003 and now charges 15 to enter the central zone during Ministry of Housing and Urban Affairs floated the idea as far back as 2013. But no city has implemented it. Instead, most have chosen more roads, more flyovers — and more opinion: Experts say this can work, but only if done right. That means pricing has to be fair, public transport must improve, and exemptions need to be carefully designed. Because congestion pricing is not just a tax, it's a message: both your time and your city's air are valuable.- EndsTrending Reel
New Indian Express
20-07-2025
- Politics
- New Indian Express
The great demographic heist: Illegal migration is rewriting India's future
If India were a revolving door, it would be spinning so fast that even the ghost of Gandhi might pause for breath. On one side, the country's best and brightest are leaving with passports, visas, and resignation letters in hand. On the other, a steady stream of undocumented immigrants are arriving without papers, without plans. India has the world's largest diaspora: over 35 million people. Each year, around 2.5 million Indians left the country in search of better air, better jobs, and better governance. Over 3,98,000 received official emigration clearances in 2023. Add students, startup founders, and HNW individuals relocating to Dubai condos and Canadian townhomes, and you begin to grasp the scale of the churn. Nearly 2,26,000 Indians renounced citizenship in 2022. This may seem small compared to India's 146.39 crore population, but their contribution to the economy is way disproportionate: a PRICE study says by 2030-31, the middle class and high-income segments would contribute nearly $2.7 trillion to incremental consumption. Imagine the loss from each citizen leaving town. What's causing this haemorrhage? Bad roads and worse governance. Draconian tax regimes. Courts that take decades to deliver verdicts. Public hospitals that function like holding pens. Police stations that intimidate the complainant. These emigrants aren't unpatriotic. They're just done waiting. Meanwhile illegal migration floods the informal labour market, driving down wages and increasing competition for welfare. Try questioning it, and you'll be branded as heartless, fascist, or worse.
Mint
10-07-2025
- Business
- Mint
Debt isn't the enemy: It offers many Indian households a lifeline
As India marches towards its $5 trillion economic goal, the discourse around household debt tends to veer towards alarm. Rising indebtedness is often viewed as a red flag—a symptom of financial stress or economic exclusion. While this concern is not unfounded, it also misses a crucial dimension. For many Indian households, debt is not just a burden. It is a deliberate tool for investment, a coping mechanism in the face of weak public provisioning and sometimes a pathway to upward mobility. New insights from PRICE's ICE 360° research reveal that around 30% of India's 331 million households currently carry debt. But this topline figure hides wide variation across occupational groups; and the nature of borrowing, its purpose and its source offer a more nuanced view of household finance in India. Also Read: Rajesh Shukla: India's growth is impressive but let's universalize the gains Self-employed agricultural households, for instance, have the highest incidence of debt (38%), followed closely by non-agricultural labourers and other self-employed households (both at 28–29%). This suggests not just vulnerability, but active economic engagement. In agriculture, 57% of self- employed borrowers report using loans for productive needs like farming inputs and livestock. In non-agriculture, 31% of the self-employed borrow to expand their businesses. These are investments in livelihoods, not signs of distress. Still, the picture is not uniformly optimistic. Debt burdens are more acute when considered as a share of income: debt-to-income ratios stand at 16% for self-employed agricultural households and 15% for self-employed non-agricultural households, compared to 10% for salaried ones. Among self-employed non-agricultural households, total household debt has grown by 12% over the past decade—the fastest among all groups. This sharp rise suggests increased entrepreneurial activity, but also greater exposure to financial volatility and market shocks. The source of credit also matters. While 52% of indebted households borrow from formal institutions, this access is uneven. Salaried and self-employed households generally have better integration with the formal credit system. But labour households remain disproportionately dependent on informal lenders—62% among agricultural labourers and 58% among non-agricultural ones. This exposes them to exploitative interest rates, limited grievance redressal and greater financial precarity. Also Read: Rajesh Shukla: It takes granular data to grasp Indian savings behaviour The reasons households borrow further highlight this duality. While self-employed households often borrow to grow, labour households mostly borrow to survive. Among agricultural and non- agricultural labourers, 24% and 29% respectively borrow for medical emergencies, while 19% borrow simply to meet basic consumption needs. Even among relatively secure salaried households, 24% report borrowing for health-related expenses and 15% for their children's education—pointing to gaps in healthcare and educational provisioning that credit alone cannot fix. These patterns make clear that the same instrument—credit—can serve different functions, depending on the household's economic position. In short, India's household debt landscape is fragmented and deeply unequal. But it also reflects an undercurrent of aspiration and self-reliance. Policy must recognize both: that some households use debt as capital for growth, while others use it as a last resort. To begin with, in agriculture, while formal credit penetration is comparatively high, a growing debt burden signals that access alone is not enough. A shift is needed—from reactive measures like loan waivers to proactive strategies such as improving value chains, widening crop insurance coverage and refining the Kisan Credit Card ecosystem to match the real working-capital cycles of farmers. Also, structural reforms in agricultural markets must accompany credit policies to deliver a lasting impact. Also Read: TCA Anant: A household income survey will be valuable if clarity beats confusion At the same time, the strong link between indebtedness and health-related expenses calls for better integration between credit policy and social protection. Medical emergencies are a leading cause of borrowing not just among the poor, but across all occupational segments. Expanding public health insurance schemes, like Ayushman Bharat, and linking Jan Dhan accounts to subsidized or emergency medical loan products can reduce the need for distress borrowing and protect households from falling into debt traps due to health shocks. Coordinated interventions between the financial and health sectors will be essential. For self-employed households, especially those outside agriculture, credit must serve as fuel for enterprise. Programmes like Mudra have made inroads, but more customized financial products—like flexible working capital loans and digital credit tailored to urban micro-enterprises—can help these households grow sustainably. Such investments support not only household income, but also employment generation and local economic dynamism, especially in rapidly urbanizing areas. Also Read: India needs reliable data to track capital expenditure across the economy Expanding access to formal credit for labour households is critical. These groups—particularly agricultural and non-agricultural labourers—are overwhelmingly dependent on informal lenders, often paying exorbitant interest rates with little protection. Simplifying know-your-customer (KYC) norms, broadening the outreach of microfinance institutions and leveraging digital platforms to deliver small-ticket, low-friction loans can bring these vulnerable households into the formal financial system. Inclusion here is not just about access—it's about protection and sustainability. Also Read: Himanshu: India needs official poverty data for effective policymaking Finally, building long-term financial resilience calls for investing in financial literacy. Widespread reliance on a single credit source and the high share of distress-driven borrowing indicate that many households lack the knowledge and confidence to navigate financial choices. Scalable models—from community programmes and mobile apps to school curricula—could create financial capabilities over time. A well-informed borrower is not just better protected, but more empowered. India's household debt story is not a single narrative. It is a mosaic of need, ambition, risk and resilience. If policy responds to this complexity with sensitivity and segmentation, household credit can shift from being a crisis lifeline to a lever for economic transformation. The author is managing director and chief executive officer of People Research on India's Consumer Economy.
Mint
25-06-2025
- Business
- Mint
The mystery of India's missing middle class: Is it really part of our growth story?
Next Story Tulsi Jayakumar Enough data points to the inability of this class to lead a consumption boom, a la China's. The consequences of this may be significant. India's economic emergence simply can't afford to leave such an important chunk of the population behind. If India's middle class stays on the margins of its growth story, the economic consequences could be significant. Gift this article India's economy clocked a robust 7.4% year-on-year growth in the fourth quarter of 2024–25 and is forecast to expand around 6.5% in fiscal year 2024-25. While this marks a slowdown from the 9.2% growth achieved in 2023-24, it still makes India one of the world's fastest-growing major economies. India's economy clocked a robust 7.4% year-on-year growth in the fourth quarter of 2024–25 and is forecast to expand around 6.5% in fiscal year 2024-25. While this marks a slowdown from the 9.2% growth achieved in 2023-24, it still makes India one of the world's fastest-growing major economies. Against this backdrop, can one pin hopes on the country's burgeoning middle class to drive a consumption-led growth cycle—one reminiscent of China's transformative economic surge between 2000 and 2010? The research centre PRICE defines a 'middle-class' Indian as someone earning between ₹ 1.09 lakh and ₹ 6.46 lakh per year based on 2020-21 prices, or belonging to a household earning ₹ 5 lakh to ₹ 30 lakh annually. It anticipates this segment expanding from 432 million people in 2020-21 to 715 million by 2030-31 and further to over 1 billion by 2047, forming 61% of India's projected population of 1.66 billion. Yet, beneath the headline numbers, a troubling pattern has emerged: urban discretionary spending remains subdued. The Reserve Bank of India's (RBI) latest Urban Consumer Confidence Survey for May 2025 underscores this caution. The Current Confidence Index, which measures consumer sentiment, stays below the neutral mark at 95.4, having dipped marginally from March. While the Future Expectations Index rose to 123.4, signalling optimism, weak present sentiment continues to weigh on spending. People expect things to improve but hesitate to spend now. Inflation expectations also weigh on consumption. Retail inflation eased to 2.82% in May, prompting a 50-basis-point rate cut by RBI. Yet, price pressures remain intense in essentials such as rent, education, healthcare and personal care. Softening food prices and improved real incomes brought some respite, but high urban living costs constrain discretionary expenditure. A deeper worry lies in the labour market. In May, India's unemployment rate, according to the official Periodic Labour Force Survey (PLFS), rose to 5.6% from 5.1% in April, with joblessness among urban youth aged 15-29 surging to 17.9%. Even amid high growth, job creation has not kept pace. Many new jobs remain informal or gig-based, offering little security or upward mobility. This employment shortfall undermines income security and confidence within the middle class. Private estimates from the Centre for Monitoring Indian Economy (CMIE) paint a stark picture, showing a shrinking labour force and involuntary exits from employment. CMIE places India's labour force participation rate at 40-45%, against the PLFS's 50-55%, a discrepancy explained by differing definitions: CMIE follows the International Labour Organization's income-based criteria, while PLFS includes unpaid or nominally productive work. Either way, a large proportion of people without stable jobs means households are understandably cautious about big-ticket discretionary spending. India's middle-class dilemma becomes sharper when compared with China's experience. Between 2000 and 2010, China's middle class expanded rapidly, fuelled by mass job creation in export manufacturing and sustained wage growth. By 2010, around 40% of its population was middle class. This powered booms in its markets for housing, automobiles, travel and durables. It was backed by policy interventions aimed at affordable housing, employment generation and broad access to credit for asset creation. India, despite rapid urbanization, has not matched this with comparable factory employment or city housing initiatives. Credit, a crucial enabler of middle-class consumption, has expanded but unevenly. Digital lending has surged but remains concentrated in small-ticket but high-cost personal loans for immediate consumption. As flagged by a Fitch Ratings report in January 2025, this rise in unsecured retail lending poses asset quality risks for banks. For middle-class households, a lack of formal job contracts and reliable income documentation limits access to affordable credit for high-expense purchases. If India's middle class stays on the margins of its growth story, the economic consequences could be significant. Domestic demand may stay fragile, increasing reliance on public investment and exports. Inequality risks would deepen if growth benefits just the wealthy, while consumer-facing sectors would grapple with weak demand and stunted expansion potential. A persistently cautious middle class may have social and political ramifications. Rising aspirations without economic security often leads to public frustration and mistrust in institutions. This could make it harder to turn growth into broad-based prosperity. Also Read: Let a middle-class boom fend off a middle-income trap India could take a leaf out of China's story, which recognized early the crucial role of a thriving middle class in sustaining economic development and social stability. Its 14th Five-Year Plan (2021–2025) aims to expand the middle-income group, a goal reinforced by President Xi Jinping at the 2022 Communist Party Congress, where he committed to 'substantially grow" this group. India has all the required building blocks for a consumption-led recovery—but the blueprint is incomplete. Unless we create good jobs, raise real incomes and improve access to housing and affordable credit, the middle class may remain left out of the story. That, in the end, is a problem both for the economy and our social fabric. These are the author's personal views. The author is professor, economics and policy, and executive director, Centre for Family Business & Entrepreneurship at Bhavan's SPJIMR, Mumbai. Topics You May Be Interested In Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
The Hindu
21-06-2025
- Business
- The Hindu
₹54 crore sanctioned for smart revenue offices project
The government has given administrative sanction for utilising ₹54 crore for the smart revenue offices project. The project is aimed at constructing smart revenue offices with modern facilities in phases at Collectorates, revenue divisional offices, subcollector offices, taluk offices, and village offices, and other special offices to ensure fast delivery of online and offline revenue services to the people. The project envisages improved services to the public and officials by making basic infrastructure and information and communications technology available in revenue offices from the village office level to the land revenue commissionerate. The smart revenue offices project has five components – construction of smart village offices and spillover work; renovation of other revenue offices and spillover work; related work; Revenue Bhavan; and Pattaya Mission. The special working group that met to take a decision on the project proposal submitted by the Land Revenue Commissioner stipulated that the work should be taken up only as per the estimate prepared in the PRICE (Project Information and Cost Estimation) software as per the Delhi Schedule of Rates, 2021. An amount of ₹41 crore has been sanctioned for the first three components of the project; ₹10 crore for Revenue Bhavan; and ₹3 crore for Pattaya Mission.
