Urban mobility infra strengthened household finances: EAC-PM

India's journey towards rapid urbanization has necessitated a monumental focus on infrastructure development. For decades, Indian cities have grappled with challenges like traffic congestion, pollution, and inadequate public transport, which collectively impacted productivity and quality of life. Recognizing this, successive governments have emphasized enhancing urban mobility. The recent paper by the Economic Advisory Council to the Prime Minister (EAC-PM) provides crucial empirical validation for these efforts, highlighting that investments in urban mobility infrastructure, particularly metro rail expansion over the past decade, have significantly strengthened household finances.

The EAC-PM's findings underscore a direct correlation between improved urban transport networks and enhanced household financial stability. Specifically, the report indicates that these investments have translated into stronger household liquidity management and fostered more disciplined borrowing practices. This suggests that the benefits of infrastructure extend beyond mere convenience, penetrating the core financial health of urban residents. The 'past decade' timeframe is significant, aligning with a period of accelerated metro project implementation across various Indian cities, moving beyond the pioneering Kolkata Metro (operational since 1984) and Delhi Metro (operational since 2002).

Several key stakeholders are integral to this narrative. The **Government of India**, through ministries like the Ministry of Housing and Urban Affairs (MoHUA), NITI Aayog, and advisory bodies like the EAC-PM, formulates policies and provides funding. **State Governments** and **Urban Local Bodies (ULBs)** are crucial for project implementation, land acquisition, and local governance. Public Sector Undertakings (PSUs) and Special Purpose Vehicles (SPVs) like the Delhi Metro Rail Corporation (DMRC) or Bangalore Metro Rail Corporation Limited (BMRCL) are the executing agencies. Ultimately, **Households and Citizens** are the direct beneficiaries, experiencing reduced travel times, lower transportation costs, and better access to employment and educational opportunities. Financial institutions, including banks and Non-Banking Financial Companies (NBFCs), are indirectly impacted as improved household finances can influence credit demand and repayment behaviors.

This development holds immense significance for India. Economically, robust urban mobility infrastructure enhances productivity by reducing commute times, allowing individuals more time for work or leisure, and facilitating faster movement of goods and services. It also stimulates economic activity through job creation during construction and operation phases, and by boosting real estate development around transport corridors. Socially, it improves the quality of life, promotes inclusivity by providing affordable access to various urban amenities, and contributes to environmental sustainability by encouraging a shift from private vehicles to public transport, thereby reducing pollution. Politically, these projects validate the government's focus on 'Vikas' (development) and smart urban planning, reinforcing public trust in large-scale infrastructure initiatives like the National Infrastructure Pipeline (NIP) and the Gati Shakti master plan.

Historically, urban planning in India has evolved from colonial-era layouts to post-independence efforts focusing on planned cities like Chandigarh. The real impetus for modern urban mobility infrastructure, especially metro rail, gained traction in the late 20th and early 21st centuries. Early schemes like the Jawaharlal Nehru National Urban Renewal Mission (JNNURM, 2005-2014) laid the groundwork for urban development. This was further accelerated by the Smart Cities Mission (launched 2015) and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT, launched 2015), which have a strong focus on sustainable urban infrastructure, including mobility. The current government's 'Make in India' initiative also promotes indigenous manufacturing for metro coaches and components, further boosting the domestic economy.

The **74th Constitutional Amendment Act, 1992**, is highly relevant here, as it formalized urban local self-governance, empowering ULBs to undertake urban planning, including infrastructure development. While 'urban development' falls under the Concurrent List (List III of the Seventh Schedule), allowing both central and state governments to legislate, the central government often provides policy frameworks and financial support. The **Metro Rail Policy, 2017**, for instance, provides a comprehensive framework for planning, implementation, and financing of metro projects across the country, encouraging private sector participation and innovative financing mechanisms.

The future implications are substantial. This report provides a strong rationale for continued and expanded investment in urban mobility infrastructure. It suggests that such investments are not merely expenditure but strategic capital infusions with significant positive externalities for individual financial well-being. Future policy could focus on integrating various modes of transport (multimodal integration), enhancing last-mile connectivity, and leveraging technology for smarter mobility solutions. Addressing challenges like land acquisition, environmental clearances, and ensuring financial viability through innovative models like value capture financing will be crucial for sustaining this momentum and further strengthening the financial resilience of Indian households.