Urban renewal with street vendor haats

Indian cities face a multitude of challenges, and among them is the persistent issue of unregulated streets and street vending that demand better management and organisation.

- Aravind Unni

Indian cities face a multitude of challenges, and among them is the persistent issue of unregulated streets and street vending that demand better management and organisation. The recent initiative of the Union ministry of housing and urban affairs (MoHUA) to create vending "haats" holds potential to deliver broader benefits, including enhanced pedestrian infrastructure, improved food systems, and climate resilience.

In the Union Budget 2024-25, the government introduced a scheme to develop 500 street hubs, or haats, over the next five years. This initiative builds on the success of the innovative PM SVANidhi Scheme, a micro-credit facility launched in 2020 to help vendors recover from Covid-19 losses, which till date has supported over 7.9 million vendors.

Street vendors in India, estimated at over 15 million, make up roughly 10% of urban workers and are integral to the urban economy, generating a daily turnover of hundreds of crores. Street vending offers low-income jobs for migrants and urban poor, supports small industries, and contributes to affordability and local revenues, paying both official and unofficial fees to support their livelihoods.