13 Jun 2025 : Urbanisation and the challenge of ideal transit solutions

Editorial 1: ​Urbanisation and the challenge of ideal transit solutions

Context

Planners in India should check if they are choosing the most affordable and eco-friendly transport options.

Introduction

Among the different goals of Viksit Bharat by 2047, one key focus is a more urbanised India, since urban areas are expected to be the main drivers of economic growth. It is estimated that by the 2060s, over 60% of India’s population will shift from low-productive rural regions to highly productive urban centers.

• Large-scale urban mobility — the movement of people within cities from residential areas to workplaces — poses a major challenge for urban planners.
• Though smart cities are being planned to reduce the need for daily worker mobility, progress has been slower than expected, especially when compared to China.
• India’s newly planned smart cities are not developing as rapidly or effectively as envisioned.
• Meanwhile, existing metros and tier 1 cities continue to expand rapidly, creating more pressure on infrastructure and transportation systems.
• This growth results in increased transport demands and presents new policy challenges for meeting the needs of urban workers.

Public Transport Focus and Government Initiatives

Recent Schemes and Budget Highlights

• India currently operates only 35,000 urban buses, while 2,00,000 are needed, highlighting a significant shortfall.
• Metro development is gaining momentum but is a long-term and costly project, often requiring central government funding.

Urban Transit Accessibility: Gaps & Challenges

• According to the Economic Survey, India lags far behind in ensuring access to public transit for its urban population.
• Many metro projects have not recovered full costs, as actual ridership is lower than projected.
• Fare sensitivity is high — even small fare hikes cause significant drops in footfall.

Structural and Financial Hurdles

• Cost recovery is only feasible if the metro runs along high-density routes.
• Last-mile connectivity issues reduce convenience and adoption of metro systems.
• Unlike some developed countries, India cannot afford large subsidies, making it harder to keep fares low and services accessible.

Road-Based Public Transport: The Need and the Gaps

• India needs affordable, road-based public transport to ensure better last-mile connectivity, especially in urban and metro regions.
• The 2025 Budget has increased allocations for urban bus systems, continuing support for expanding capacity.
• However, private sector investment remains limited due to uncertain returns on such infrastructure.

Shift in Government Priorities

• Although the government is now prioritising electric buses, there is a risk of high costs and limited scalability.
• Future bottom-up transport models are likely to explore a diverse mix of cleaner technologies.

Missed Opportunity: Trams and Trolleybuses

• Trams and trolleybuses are often overlooked in current policies.
• However, life cycle cost and revenue analysis show that these modes can often outperform e-buses in financial efficiency.
• These systems are mature, proven, and environmentally sustainable, and deserve serious policy attention in India’s urban transport planning.

Assessing Financial Viability of Urban Road-Based Transport

• Revenue generation and economic sustainability over time are key metrics for evaluating the profitability or deficit of urban road-based transport systems.
• Analyzing Profit & Loss (P&L) percentages over a system's life cycle is essential for informed policy decisions regarding future transit investments.

Comparative Life Cycle Profitability (Over 70 Years)

• Trams emerge as the most economically viable and sustainable option over the long term, aligning well with both climate goals and urban scalability.
• While e-buses are the current priority, they face serious financial drawbacks over time.
• Trolleybuses, though better than e-buses, still do not match the comprehensive advantages of trams.

Conclusion

This brings us to a crucial point of reflection: Are current investments in urban mobility genuinely sustainable and cost-effective, or are they building a system reliant on ongoing public subsidies? It is essential to evaluate whether our transit choices will stand the test of time, both economically and environmentally. In this context, the planned reintroduction of trams in Kochi could become a significant turning point in India’s approach to urban transport. Far from being a nostalgic nod to history, as seen in Kolkata, this move represents a strategic and forward-thinking decision. Embracing such proven, low-emission and long-life transit systems may offer a more viable alternative to costly, high-maintenance options, and help lay the foundation for a financially stable and climate-resilient future in urban mobility.