Transportation Revolution in Indian Cities

Indian cities are on the verge of a major transformation in transportation, with plans to invest a staggering Rs 3 trillion in metro rail projects between 2022 and 2027. This investment is not just about improving urban mobility; it has the potential to unlock significant economic growth and create thousands of jobs.

Impact of Public Transportation Investment

• Research shows that investing in public transportation can generate returns of 5 to 7 times the initial investment. Recognizing this, the Government of India approved the National Transit Oriented Development (TOD) Policy and Metro Rail Policy in 2017. These policies promote TOD as a strategy for urban planning, encouraging mixed-use developments close to public transport.
• Currently, 27 Indian cities are building metro systems, and many others are developing bus and rail networks to enhance public transport.

How will TOD address urban challenges?

• As cities expand, job centers are increasingly located in suburban areas, making it difficult for public transport systems to keep up. This leads to longer commutes, congestion, and pollution from private vehicles.
  • For example, Bengaluru is one of the world’s most congested cities, costing the economy around Rs 38,000 crore annually (about 5% of the city’s GDP).
• TOD offers a solution by promoting compact, mixed-use development. This approach integrates land use and transport, supporting sustainable modes like walking, cycling, and mass transit.
  • A recent study by WRI India highlights the importance of bringing jobs closer to transit stations to improve accessibility and productivity.

Key Findings from Bengaluru's Job Market

• WRI India’s study focused on the Bengaluru Metropolitan Area (BMA), analyzing job distribution and proximity to the metro network. Here are some key insights:
• There are about 200,000 registered enterprises in the BMA, employing nearly 6 million workers, primarily in the service sector.
• Large enterprises (those with 100+ employees) make up only 2% of businesses but account for 60% of jobs.
• Job densities are highest in central areas and tech hubs, like Whitefield and Electronic City, with densities reaching 58,000 to 109,000 jobs/sq. km.
• Once the metro expansions are completed (totaling 172 km), it is projected that 28% of jobs in the BMA will be within 500 meters of a metro station, 59% within 1 km, and 85% within 2 km. However, many large job clusters remain disconnected, underscoring the need for better pedestrian infrastructure and feeder services.

Benefits of Job Clustering Near Transit

• When businesses cluster near transit, they benefit from increased accessibility for both workers and customers.
• This agglomeration leads to enhanced innovation, productivity, and competitiveness.
• Additionally, businesses near metro stations often experience growth in local economic activity and real estate development.

Challenges to Business Location

Despite the benefits, there are hurdles for large businesses looking to establish themselves near metro stations:

• Limited Property Availability: Inner-city areas have high property prices and small plot sizes, which can deter larger businesses.
• Regulatory Hurdles: Development regulations and zoning laws can restrict higher-density development.
• Market Saturation: Smaller businesses may struggle to compete with established ones in high-traffic areas.

Lessons from Global Cities

• Cities like Hong Kong have successfully integrated jobs and transit, with 57% of jobs located within 500 meters of transit stations.
• This efficient transport system contributes to high levels of transit use and low car ownership, resulting in increased economic output and reduced carbon emissions.