THE UNTAPPED POTENTIAL OF STREET VENDING IN CITIES
Dr. Sudhir Krishna is a former Secretary of the Urban Development, Government of India and currently chairs the BIS Committee on Smart Cities Street vending is an essential part of all cities in India and most developing countries. Almost every household interacts with street vendors regularly to procure daily necessities, including fruits and vegetables, a variety of eatables, and knickknacks, including electronic goods, watches, and whatnot. Citizens have tremendous faith in getting the ‘best value for money’ through purchasing from street vendors.
Even developed countries find street vending a necessary part of the social and economic
milieu of the cities. Their status in the society and economy is similar to what it is in India,
highlighted by global networking organisations, such as StreetNet
International, HomeNet International, Global Alliance of Waste Pickers, International Domestic Workers Federation, and Women in Informal Employment: Globalizing and
Organizing (WEIGO), from time to time.
The number of street vendors in the country is estimated by MoHUA as one crore, with
Delhi accounting for 450,000, which is around 2 percent of the In NCT’s Population. contrast, Mumbai has 250,000, Kolkata 150,000, and Ahmedabad 100,000. Many states and cities have yet to conduct/complete the survey of street vendors, and as such, the actual number would be much higher. Meanwhile, the National Hawkers Federation (NHF) has stated that there are nearly 40 million street vendors in India, which is about 10 percent of the total urban population.
As per the estimation of NHF, the individual turnover of street vendors ranges between `500 and `10,000 per day and, considering an average of `2,000, they generate a turnover of around `8,000 crore per day, or `29.20 lakh crore per year. This is a humungous amount and beats the turnover figures of organised retailers like Swiggy, Blinkit, Milk Basket, etc. and even Amazon India, hands down!
The sheer number and turnover of street vendors indicate the massive role of street vending in the country’s urban economy.
The Challenges
Despite their very significant contribution to the employment market and the economy, street vendors face numerous hurdles regularly. They are invariably accused of encroachment, littering, causing nuisance and even traffic jams. They are vulnerable to evictions and exploitation from multiple sources. They borrow money from informal
routes at exorbitant interest rates of 5 to 10 percent per day! There are no schemes to provide financial and social security for them, as are available to some other sectors, such as the unorganised construction workers. Obtaining a license is the most difficult thing for them. They face continuous threats of eviction from the local civic and police authorities, even if they operate with a proper licence. The fear of theft of their goods and physical
abuse from various quarters keep stalking them at all times
The Silver Lining
Many activists and NGOs have been working assiduously to address the challenges
faced by street vendors. Organisations like the NHF, SEWA (Self-Employed Women’s
Association), and NASVI (National Association of Street Vendors of India) advocate for
the rights and welfare of street vendors across India. Following such efforts, the brightest silver lining for the street vending sector came in 2014, with the enactment of the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 (the SV Act) by the Parliament of India.
“As per the estimation of NHF, the individual turnover of street vendors ranges between `500 and `10,000 per day and, considering an average of ` 2,000, they generate a turnover of around `8,000 crore per day, or `29.20 lakh crore per year”
The SV Act has mandated periodic surveys certification of the and street vendors, the creation of SV zones, and the allotment of suitable space to the certified vendors. The Act also gave every street vendor the right to carry on the business of street vending activities in accordance with the terms and conditions stated in the certificate. The Act provides for the constitution of a Town Vending Committee for each town/zone/ward, chaired by the Municipal Commissioner, to plan and administer these arrangements. Post the SV Act, all
States/UTs have notified their respective Street Vending Rules/Schemes. However, as far as implementation is concerned, only sporadic efforts are visible, too, only in a few cities. The opportunities await fuller exploration by a big margin
In the wake of the Covid-19 pandemic and its adverse impact on street vendors, the
Central Government introduced the PM-SVANidhi (Street Vendor’s AtmaNirbhar Nidhi) Scheme in June 2020 to facilitate affordable initial working capital loans up to `10,000 (raised subsequently to `80,000) with interest subsidised to 7 percent. The scheme also aims to incentivise digital transactions through a cash-back facility of up to `1200 per annum. The Scheme extends its benefits to urban areas and vendors from surrounding rural and peri-urban areas. As of July 17, 2024, the scheme has disbursed more than `86 lakh loans, totalling over `11,680 crore, benefiting nearly `65 lakh street vendors nationwide (source: PIB Release dated 23 July 2024). Still, the planning for a street vending zone,
providing more dignified and safer physical spaces for the street vendors, remains missing, with only a few exceptions. Properly planned and regulated street vending zones can also become a good source of revenue for municipalities through licence fees. At an average licence fee of `500 per year, the 40 million street vendors would give the municipalities a revenue of `2000 crore. Well-planned and organised street vending zones can add to the city’s safe nightlife and further boost social and economic activities.
The Way Ahead
Street vendors are a lifeline for the cities, and street vending is a potential booster for the city’s social and economic profile. It is high time the cities paid serious attention to the on-ground implementation of the SV Act by revisiting the City Master Plans and providing adequate spaces for the street vending zones. The SV zones should have a decent layout with provisions for shared amenities like vehicle parking, public toilets, ATMs, etc. The issuance of certificates to the street vendors needs to be speeded up, and vending
zone committees appropriate with representations need to be activated. With vision for systematic planning and care for its sustainable implementation, street vending can raise the level of employment and the economic activities equitably of cities more and sustainably, aiding faster attainment of sustainable development goals.
