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...