Union Budget and Urban Mobility
The Union Budget highlights the importance of urban areas in India's growth strategy through significant public capital expenditure, including:
- Infrastructure spending of ₹12.2 trillion.
- Announcement of seven new high-speed rail corridors.
- Expansion of Metro networks.
- Proposal to create "city economic regions."
- Incentives for municipal corporations to access the bond market.
These initiatives aim to harness the economic potential of the urbanizing population but require effective urban mobility systems to succeed.
The Importance of Transportation
According to the Economic Survey 2025-26, transportation is essential for city functionality, likened to the "bloodstream, spine and muscles" of a city, facilitating the movement of people, goods, and ideas. Challenges in this area lead to:
- Congestion.
- Pollution.
- Reduced productivity.
Statistics on congestion costs include:
- Unskilled workers in Delhi losing up to ₹19,600 annually.
- Skilled workers losing nearly ₹26,000 annually.
- Bengaluru losing about 700,000 productive hours in 2018.
- Annual congestion costs of $22 billion for India's four largest metros.
Current Mobility Challenges
Despite significant investment in mass rapid transit systems, cities remain too reliant on private vehicles, leading to congested roads. Key issues include:
- Inadequate bus services. India has only about 47,650 buses, with 61% in nine mega cities.
- Poor first- and last-mile connectivity, limiting the effectiveness of Metro and rail systems.
Strategies for Improvement
A shift towards people-centric planning is necessary, involving:
- Expanding and digitizing bus fleets.
- Promoting safe and attractive walking and cycling options.
- Integrating shared mobility for last-mile access.
- Implementing transit-oriented development around stations.
- Technology-driven traffic management and demand-based parking policies.
Urban mobility is crucial to economic growth, and without improvements, the Budget's growth objectives could face significant challenges.