International Journal For Multidisciplinary Research

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The Economics of Public Transport in Mumbai: A Critical Analysis of Inefficiencies and Policy Failures

Author(s) Rohit Kashinath Pithale
Country India
Abstract Public transportation is a fundamental driver of urban economic efficiency, social equity, and environmental sustainability. Mumbai, India's financial capital, operates one of the world’s most extensive yet overburdened public transport systems, comprising suburban railways, metro lines, bus services, and auto-rickshaws. However, chronic underinvestment, policy misalignment, and inefficient resource allocation have led to severe economic distortions in the sector. The government's failure to integrate long-term transportation planning with urban development has resulted in externalities such as excessive congestion, air pollution, and economic productivity losses due to extended travel times.
This paper applies transportation economic theories—demand-supply dynamics, cost-benefit analysis, congestion pricing, and externalities—to critically examine Mumbai’s public transport sector. We argue that state intervention has been insufficient and misdirected, prioritizing capital-intensive projects with long gestation periods while neglecting low-cost, high-impact solutions such as bus network optimization and congestion management. Moreover, excessive reliance on fare hikes as a revenue model has made public transport increasingly unaffordable for low-income commuters, reinforcing economic inequities. By integrating global best practices, this study highlights the structural inefficiencies in Mumbai’s public transport system and advocates for data-driven, economically sound policy interventions to restore efficiency and equity in urban mobility
Keywords Transportation, Congestion, Policies, Infrastructure
Field Sociology > Economics
Published In Volume 7, Issue 1, January-February 2025
Published On 2025-02-28
DOI https://doi.org/10.36948/ijfmr.2025.v07i01.37881
Short DOI https://doi.org/g86w6b
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