Urban mobility infra strengthened household finances: EAC-PM

New Delhi: Improved access to efficient public transport reduces households’ dependence on private vehicles, thereby lowering recurring transportation expenses, said a working paper by the Economic Advisory Council to the PM (EAC-PM).

“This, in turn, eases the burden of servicing EMIs (equated monthly instalments), among the most significant fixed financial commitments for urban households,” said the paper, co-authored by Soumya Kanti Ghosh and Pulak Ghosh, part-time members at the EAC-PM, and Falguni Sinha, economist at State Bank of India.

According to the paper, investments in urban mobility infrastructure over the past decade, particularly metro rail expansion, have translated into stronger household liquidity management and more disciplined borrowing.

“These behavioural improvements form a critical foundation for household financial resilience and contribute meaningfully to broader financial stability,” it said.