Amit's Blog

The Stranglehold of Regulation: Exploitation and Economic Distortion in India’s Informal Sectors India’s informal sectors—street vending, auto-rickshaws, waste collection, small-scale fishing, and contract labor in construction—mirror the exploitative dynamics of railway porters, driven by tightly controlled licensing and permits. In urban hubs like Delhi, Mumbai, Kolkata, and Chennai, license scarcity creates black markets, with permits trading at ₹10,000–₹2 lakhs. Workers, often from marginalized communities, borrow from informal lenders at usurious rates (24–100% annually), trapping them in debt. A nexus of local officials, police, and lenders profits, while workers charge high prices (e.g., ₹20–50 for street food, ₹30–60 per km for auto-rickshaws) to offset costs, frustrating consumers who misdirect anger at workers. Despite India’s labor surplus, gatekeeping inflates costs, perpetuating inequity. This essay explores these dynamics across 10 key urban centers, drawing parallels w...

The E-Rickshaw Conundrum: Licensing, Debt, and Exploitation in India’s Urban Transport Ecosystem The e-rickshaw sector in India, a vital component of urban mobility, mirrors the exploitative dynamics observed in the railway porter system. At India’s busiest urban centers, such as Delhi, Kolkata, and Mumbai, tightly controlled e-rickshaw licenses, coupled with high purchase costs (₹1–2 lakhs, exacerbated by taxes like 5–12% GST), create a black market where permits are traded at premiums (₹50,000–₹1 lakh). Drivers, often from marginalized communities, rely on informal lenders charging usurious interest rates (24–100% annually), trapping them in debt cycles. A nexus of local authorities, police, and lenders profits, while drivers charge high fares (₹20–50 per km) to offset costs, alienating passengers. Despite India’s labor surplus, license restrictions and gatekeeping inflate costs, perpetuating economic inequity. This essay explores these dynamics across 10 high-traffic urban areas, ...

The Hidden Costs of Porter Licenses: Exploitation and Economic Distortion at India’s Busiest Railway Stations India’s railway stations, vital arteries of the nation’s transport system, are marred by a shadowy nexus that exploits porters and passengers alike. At the 10 busiest stations—New Delhi, Howrah, Mumbai CSMT, Chennai Central, Kolkata, Secunderabad, Bengaluru City, Hazrat Nizamuddin, Anand Vihar, and Ahmedabad—tightly controlled porter licenses, traded at exorbitant rates (₹10–15 lakhs in New Delhi), create a black market fueled by scarcity. Porters, often from marginalized communities, borrow from informal lenders at usurious interest rates (36–120% annually), forcing them to charge passengers high fees (₹50–200 per load). A nexus of railway officials, police, and lenders profits, while porters bear debt burdens and passengers face inflated costs, misdirecting their frustration at porters. Despite India’s labor surplus, this gatekeeping system ensures high charges, economic in...