Context

Transportation is a critical issue in rural India, with limited and unorganised connectivity severely restricting access to essential services such as education, healthcare, and economic opportunities.

India’s rural population is around 64.13% of the total population. India invests 1.7% of its GDP in public transport, but there is still a significant gap in rural areas.

India has made significant strides towards improving road infrastructure, connecting over 650,000 villages in the last two decades. This expansion is evident in the rapid growth of India’s rural road network, from a cumulative connectivity of 3,50,501 km in 2011-12 to 7,04,751 km in 2021-22. Despite this progress, there remains a glaring absence of efficient public transport options in rural areas.

While shared mobility solutions such as Intermediate Para Transit (IPT) are prevalent, they are largely informal and often operate outside legal frameworks, compromising safety and efficiency. Enhancing shared mobility in rural India is imperative for fostering inclusive growth, empowering rural and peri-urban communities, and building a sustainable and economically healthy future. Formalising the sector will also drive job creation thereby improving livelihoods.

Centre for Public Policy Research (CPPR) is conducting a study to assess the challenges facing shared mobility and IPT services and to advocate for policy reforms that can enhance rural transport systems and promote economic empowerment in 5 Indian states.

Project Objectives

• Review existing Indian laws, policies, and orders related to shared mobility and IPT services.
• Identify regulatory gaps and barriers hindering growth and formalisation of shared mobility in rural areas.
• Propose amendments to the Motor Vehicles Act and relevant state regulations to legalize and liberalize shared mobility.
• Submit policy recommendations to state and central governments to promote rural economic empowerment through improved transportation policies.
• Launch a national advocacy campaign to build public and political support for the proposed policy changes.