Policy Plunge

India’s Urban Transport System Needs A Sustainable Solution

As rising pollution and sustainability demands cast shadows on urban transport, India needs to manage the growing complexity of its transport needs with robust institutional frameworks that encourage complementarity and efficiency over competition

The World Meteorological Organisation's (WMO) 2024 update sounds a Red Alert on the rapid pace of climate change, driven by soaring greenhouse gas emissions. The decade from 2015-2024 is set to be the hottest on record, with glaciers melting, sea levels rising and extreme weather ravaging communities worldwide.

Meanwhile, a new study from Pune's Indian Institute of Tropical Meteorology (IITM) reveals that vehicular emissions, not just stubble burning, are to blame for a staggering 14.2 per cent of Delhi's air pollution. With the urgency to curb automobile emissions mounting, the push for EVs has never been more needed.

India’s urban transport system is at a tipping point. With over 1.4 billion people and a rapidly growing urban population — set to reach 600 million by 2031 — our cities are bursting at the seams. Already, nearly 70 per cent of the nation’s GDP comes from urban areas, yet transportation infrastructure is failing to keep pace.

The result? Congestion, inefficiency and limited accessibility. While car ownership soars, with a 21 per cent rise in passenger vehicles, the system is becoming increasingly unsustainable. It’s time for a bold overhaul to match the demands of India’s future (See Figure 1).

Passenger car sales surged by 16 per cent last year, pushing the total from 1.47 million to 1.74 million, exacerbating traffic jams, air pollution and inequality in mobility, particularly for low-income communities. In this context, India must prioritise urban transport that is equitable, accessible and sustainable. But despite the clear need for efficient public transport, buses — arguably the most effective solution — have been ignored. 

Buses: Orphans Of Public Transport

Indian cities face severe traffic congestion and high emissions, making the need for sustainable public transport urgent. However, well-connected city bus services, potentially the most effective solution, have been largely neglected in favour of costly Metro and high-speed rail projects, which serve limited populations over specific routes. Despite the importance of buses, funding has been disproportionately allocated, with Rs 1.4 lakh crore going to Metro and high-speed rail (HSR) projects during the Union government’s 2019-24 term, while urban bus transport received a mere Rs 4,048 crore — just 3 per cent of the Metro and HSR budget.

Advocates for sustainable transport argue that investing in buses and suburban rail is a far cheaper and faster way to enhance public transport adoption. But Figure 2 tells a completely different story.

India plans to roll out over 50,000 electric buses through initiatives like the National Electric Bus Programme, but the transition faces significant hurdles. A World Resources Institute (WRI) working paper reveals that financing challenges — such as loans tied to corporate guarantees and delayed payments from public authorities — are driving up costs for operators, making electric buses a costly venture. With 70 million people relying on government buses daily — more than double the numbers using Indian Railways — buses are the lifeblood of urban mobility. Yet, the system is in crisis, plagued by high fuel costs, bloated staffing and financial unsustainability. Reform is urgent.

Rising Costs, Falling Standards

India’s state-run buses are in a financial crisis. The root cause is clear: Unaffordable fares. Diesel prices are soaring, staff salaries — with up to five employees per bus in some cases — are high, and these costs make up nearly half of what State Road Transport Units (SRTUs) spend. Yet, fare hikes are rare due to political pressures, leaving buses unable to keep up with rising costs. Even when state governments reimburse SRTUs for concessions, delays and insufficient amounts make matters worse, forcing them to borrow money just to stay afloat.

The result is a fleet of aging, poorly maintained buses — nearly a quarter of them are over eight years old — leading to higher fuel consumption and worsening the financial hole. Meanwhile, the government is failing to act. The Ministry of Road Transport hasn’t published an updated performance review since 2017, and SRTUs across the country have racked up a combined loss of Rs 17,000 crore. With every passing year, India’s vital bus system deteriorates, and the millions who depend on it are left in the lurch.

Today, India has around 3 lakh buses operated by state undertakings, but experts say the country needs 30 lakh to keep up with its population. Figure 3 highlights the minimum requirement of buses required per 10,000 people

Despite this glaring shortfall, even in comparison to the minimum requirement for buses, we continue to underfund the bus system. Public transport has historically received less than 1 per cent of the annual road transport budget. That’s simply not enough to meet the growing demand. It's high time we prioritise buses and invest in the future of our cities.

Non-Motorised Transport

Indian cities are failing pedestrians and cyclists, despite the key role Non-Motorised Transport (NMT) plays in urban mobility. In 2022, 32,825 pedestrians and 4,836 cyclists lost their lives, underscoring the dire lack of safety and infrastructure. Footpaths are poorly maintained, cycling tracks are scarce, and a 2022 survey gave NMT amenities dismal ratings of 2.8/10 for footpaths and 3/10 for cycling infrastructure.

While policies like the National Urban Transport Policy (NUTP) and the Smart City Mission aim to boost NMT, progress has been slow. Weak data, inconsistent implementation, and neglect in planning for NMT demand urgent action.

Last-Mile Connectivity

India's urban transport system is fragmented, with public transport modes often competing rather than complementing one another. While multimodal systems exist, they remain poorly integrated, with Metro systems failing to connect seamlessly with feeder services like auto-rickshaws, taxis and ride-hailing platforms. This lack of integration has hindered Metro ridership, as commuters struggle with the critical first- and last- mile connectivity. Without smooth transitions between modes, many potential Metro riders are left with no viable option to complete their journey.

Paratransit services, including Ola, Uber, and Rapido, play a vital role in bridging this gap, accounting for 25 per cent of motorised trips, especially in smaller cities where public transport options are limited. However, these services face significant challenges, including regulatory gaps, safety concerns, fare overcharging and competition between operators. Despite these hurdles, paratransit is crucial to urban mobility, and there is an urgent need for comprehensive policy frameworks that integrate these services with formal public transport, ensuring they complement, rather than compete with each other.

Public Transport Authorities (PTAs) should oversee multimodal transport plans, setting service standards and ensuring operators meet agreed schedules and remuneration. This structured approach will help improve accountability and efficiency across the system. Shared mobility services like ride-hailing should be seen as part of the solution to the last-mile challenge, not as competitors to public transport. By adopting inclusive regulatory frameworks and models like ‘Mobility as a Service’ (MaaS), India can integrate new mobility solutions with existing transit systems, reduce reliance on private vehicles, and boost public transport ridership — creating a more efficient, sustainable and inclusive urban transport network.

Building A Stronger Urban Mobility Framework

To manage the growing complexity of transport needs, we need robust institutional frameworks. The NUTP recommends Unified Metropolitan Transport Authorities (UMTAs) for cities with over a million people, but progress has been slow due to a lack of regulatory mandates.

Yet, cities like Chennai and Bengaluru have demonstrated the power of coordinated planning, with successful models like the Chennai Unified Metropolitan Transport Authority (CUMTA) and the Karnataka Non-Motorised Transport Agency (KNMTA). These cities, along with Pune, have adopted progressive policies, prioritising sustainable mobility, including walking, cycling and public transport.

Crucially, city-level budgets must reflect these priorities. For example, Pune and Pimpri-Chinchwad allocate 25 per cent of their transport budgets to sustainable initiatives. To transform India’s urban mobility landscape, we need comprehensive, data-driven policies that support these sustainable goals. The Centre must set a clear vision, provide strong financial backing, and foster peer-to-peer learning across cities to accelerate progress.

States like Maharashtra, Karnataka and Tamil Nadu have shown how vital local support is for guiding cities in adopting progressive policies and securing funding. However, cities themselves must take the lead by establishing strong institutions, allocating adequate resources and creating policies that meet the demands of growing urban populations.

By learning from successful examples, India can build a sustainable, efficient and inclusive urban mobility system. The time to act is now. By prioritising public transport and NMT, we can reduce our reliance on private vehicles, creating cities that are not only more livable but also economically efficient and environmentally sustainable.

(The writer is a public policy and urban transportation enthusiast and specialist. Views are personal)

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