Street vendors add colour to cities

Achievement of India’s $ 5 trillion economy objective has the potential to catapult the nation to the top league while at the same time lifting millions of our population out of poverty and towards a brighter future. Needless to say, every sector of the economy will play a role in achieving this mission. India’s large informal economy comprising among others, its street vendors, will be a key player.
The informal sector, including street vendors, is an important, rather vital part of India’s economy. The street vendors provide goods and services at the doorsteps of households across social and economic profiles in an efficient, effective and economical manner. Most often one is able to buy fruits, vegetables and several household goods, as also snacks, food, and ice-cream at informal marketplaces. Services such as ironing of clothes, travelling ‘kabadiwallas’, and even kids’ entertainment are available at street corners. The street vendor then is a kay participant in the supply chain that reaches goods and services to consumers. In fact in many cities, some informal markets are key landmarks and large populations depend on them for all their food, clothing and daily needs.
During the COVID-19 related economic lockdown and other restrictions last year, one has seen that this sector consisting largely of migrant population from villages and smaller towns came under severe stress; while on the one hand due to restrictions on their activities and earnings, and on the other due to near zero-access of this population to any social security system.
The PM SVANidhi (Street Vendor’s AtmaNirbhar Nidhi) came in handy at this time. The Scheme works to make available micro credit to the vendors at attractive interest rates with a comprehensive package including incentives for prompt payment. In this issue of Urban Update, we carry an interview with the Joint Secretary, MoHUA who is overseeing the implementation on this scheme. He throws light on the role of street vendors, the difficulties they faced and how the Government through PM SVANidhi has been able to address the needs of this crucial sector and alleviate their hardships.
We believe that policy-makers at the national and state levels could address several aspects of the street vendors’ activities. Firstly their livelihood requirements which includes facilitating their functioning through appropriate regulation such as hawking zones and timings. Such regulation is needed largely to ensure smooth access for all road users and to address congestion and safety concerns. The SVANidhi Scheme ensures a crucial input namely access to capital without pushing the vendors into the arms of exorbitant informal sources. Access to affordable housing, education for children, medical insurance, and old age pensions are several aspects which are being addressed by the national and state governments with various schemes. NGOs, civil society and Corporate Social Responsibility (CSR) interventions can play important roles while working with local governments in these areas. All of this is necessary if we are not to ever again see those traumatic images of migrants during the last lockdown.
In this issue of Urban Update we carry, in addition to the interview mentioned above, some other views and reports on the street vendors’ ecosystem in India. We trust readers will find the issue engaging.