Bus Fare Subsidies Boost Women’s Savings and Employment Opportunities

A new study shows that bus fare subsidies help women save between 30 per cent and 50 per cent on transport costs, allowing greater investment in essentials like food, healthcare, and children’s education. The survey, covering five states, highlights how in cities such as Nagpur and Pune, where subsidies mainly benefit intercity or long-distance routes, women save an average of Rs 409 to Rs 538 each month.

The report, titled ‘Beyond Free Rides: A Multi-State Assessment of Women’s Bus Fare Subsidy Schemes in Urban India’, commissioned by the Sustainable Mobility Network and prepared by Nikore Associates, assessed schemes across ten cities in Delhi, Karnataka, Kerala, West Bengal, and Maharashtra. It found that in cities like Bengaluru with reliable bus services, women’s employment improved nearly five times more than in cities with less developed infrastructure.

According to Mitali Nikore, founder of Nikore Associates, removing bus fares allows women, particularly those in low-income jobs, to participate more fully in the economy and maintain their dignity. Cities offering full subsidies saw women saving over half their monthly transport expenses, which could then be allocated to household needs.

However, in cities like Nagpur and Pune, where subsidies mainly cover longer or intercity routes, monthly savings ranged from Rs 409 to Rs 538. The report states this limited benefit results from a mismatch between the subsidy coverage and women’s actual travel patterns, as most trips are within the city and remain fully paid by women themselves.

The survey also pointed out that a significant proportion of women in cities without subsidies—such as Kochi, Thiruvananthapuram, Kolkata, and Durgapur—would switch to buses if fares were free, with figures ranging from 50 per cent to 67 per cent.

The effectiveness of subsidies also varies depending on the quality of bus services. Women in cities like Bengaluru, with frequent and reliable buses, saw much greater employment improvement—almost five times higher—compared to places like Mumbai, where limited bus services and peak-hour shortages restrict access. Only about three per cent of women in Mumbai reported employment benefits from partial subsidies, versus 21 per cent in Hubballi, which has full fare subsidies and better bus services.

Safety remains a concern across all cities, with only 42-46 per cent of women feeling safe in full-subsidy cities, dropping to 31.5 per cent in cities without subsidies.