Jan 29, 2026
Jan 29, 2026
... It Is Economic Policy
India’s economic debate remains fixated on visible levers — investment inflows, manufacturing incentives, labor codes, startup capital. Yet every morning, in cities such as Bengaluru, Mumbai, Delhi, and Hyderabad, the country quietly loses something far more fundamental: billions of productive hours to congestion, delay, and exhaustion.
This is not an urban planning failure. It is a macroeconomic blind spot.
Time Is ‘Capital’ & India Is ‘Wasting’ It at Scale
Economic systems ultimately convert time into output. Every productive hour lost is capital destroyed — not deferred, not postponed, but gone.
India’s urban workforce routinely spends three to four hours a day commuting. On an annual basis, this translates into 700–1,000 hours per worker lost to transit. Even conservative assumptions reveal the magnitude of the problem: tens of billions of productive hours erased every year.
No manufacturing policy can compensate for that scale of inefficiency. No demographic dividend survives if human energy is spent in traffic before work begins.
Advanced economies internalized this logic decades ago. Urban mobility was treated not as a welfare service but as economic plumbing — something that must work efficiently for growth to flow. India, despite its ambition, still treats commuting as an inconvenience citizens must endure rather than a systemic economic cost the state must eliminate.
Global Benchmarks Are Unambiguous
In most OECD economies, average one-way commute times range between 30 and 45 minutes. Even hyper-dense cities function because transport systems are designed to compress time, not merely move people.
East Asian growth stories reinforce the same lesson. China’s economic acceleration coincided with a massive re-engineering of urban mobility — high-speed rail, suburban connectivity, satellite cities, and logistics-first planning. These were not lifestyle upgrades. They were growth accelerants.
History offers no counter-example of a major economy achieving sustained high growth while its cities remain chronically congested.
India cannot be the exception.
Why Urban Mobility Must Be ‘Reframed’ at the Ministerial Level
The central failure is conceptual.
Urban transport is still discussed as:
This framing is obsolete.
Urban mobility must be elevated to the same strategic tier as:
Just as freight corridors unlocked manufacturing efficiency, human mobility corridors are essential to unlocking services-led growth, innovation, and productivity.
A city that moves slowly imposes a tax on every firm operating within it. That tax shows up as lower output, higher burnout, diminished innovation, and reduced global competitiveness.
The Hidden Productivity Multiplier
Unlike many reforms, mobility reform delivers compound returns.
Time saved from commuting is not idle time. It is reallocated to:
This creates a virtuous cycle: better mobility improves productivity, which raises incomes, which increases demand, which further strengthens growth.
Few policy levers operate with this degree of immediacy and breadth.
A Growth-Oriented Policy Framework for Urban Mobility
Reframing mobility as a growth lever demands a structural shift in policy thinking.
First, urban transport must be planned as an integrated economic system. Fragmented metros, disconnected bus networks, and weak last-mile connectivity destroy efficiency. Integration is not optional; it is foundational.
Second, employment decentralization must be policy-driven. Over-concentration of offices guarantees congestion. Distributed business districts reduce commute distances and spread economic activity more evenly.
Third, land-use reform is indispensable. Mixed-use zoning — where people can live closer to work — recovers time without massive capital expenditure. India’s rigid zoning laws are, in effect, anti-growth regulations.
Fourth, remote and hybrid work must be formally recognized as productivity tools, not temporary conveniences. Every avoided commute is an instant economic gain with zero infrastructure cost.
Finally, infrastructure appraisal must change. Cost-benefit analyses should explicitly price hours saved, not just kilometers built. Time reclaimed is economic output unlocked.
Why Incrementalism Will Fail
Flyovers, road widening, and reactive expansions are politically attractive but economically insufficient. They treat symptoms, not structure.
Without a fundamental reorientation — toward speed, integration, and proximity — urban congestion will continue to absorb the gains of every other reform.
India cannot build its way out of congestion without first thinking its way out.
The Strategic Question Before Policymakers
Can India realistically aspire to be a $10-trillion economy while its cities consume four hours of human potential every day?
Can productivity rise when the workforce arrives mentally depleted before work begins?
Can growth ambitions survive a system that taxes time so heavily and so casually?
Economic logic is unforgiving.
The answer is no.
Final Thoughts: Growth Begins on the Road to Work
The Indian workday does not start at the office. It starts when a worker leaves home.
Until urban mobility is treated as a core growth lever, not a civic afterthought, India’s economic aspirations will remain constrained by congestion, fatigue, and wasted time. Time is capital. Mobility is productivity. And the road to higher GDP quite literally begins on the road.
If India wants to ‘grow faster,’ it must first ‘move faster.’
24-Jan-2026
More by : P. Mohan Chandran