Rural India Pays More for Travel Despite Free Bus Schemes, Key Insights from Household Consumption Survey 2023-24

Rural India Pays More for Travel Despite Free Bus Schemes, Key Insights from Household Consumption Survey 2023-24

Why in News?

The recently released Household Consumption Expenditure Survey (HCES) 2023-24 highlights a paradox in India’s public transport accessibility: even with free bus schemes for women in several states, rural households continue to bear a higher burden of travel expenditure compared to urban households. The data raises concerns about transport inequality, accessibility, and policy effectiveness in addressing the mobility needs of India’s rural population.

Introduction

While India celebrates lifting 171 million people out of poverty (as per World Bank’s new global poverty estimates using the $2.15 a day threshold), the burden of travel continues to disproportionately affect rural citizens. The HCES 2023-24 provides a rich dataset on household consumption patterns, particularly the share of conveyance (transport) expenditure, throwing light on both inter-state and rural-urban disparities.

The survey reveals that in 2023-24, per capita household expenditure stood at ₹4,121 per month in rural India and ₹6,996 per month in urban India. Within this, conveyance accounted for 13% of the total monthly expenditure in rural households and 9% in urban areas. More strikingly, the share of bus expenditure within total transport costs was 20.6% in rural India, compared to only 16.2% in urban India.

This suggests that despite state-led initiatives like free bus services for women, rural areas continue to lack sufficient and affordable transportation infrastructure.

Key Issues

1. Higher Transport Burden in Rural India

• As per Chart 1, the share of bus expenditure out of the total conveyance expenditure in rural India is 20.6%, notably higher than 16.2% in urban India.

• States like Uttar Pradesh, Odisha, Karnataka, and Haryana report even lower than average reliance on buses for rural conveyance, indicating limited service coverage or reliability.

• In contrast, Kerala and Tamil Nadu, which have better bus networks, record rural bus expenditure shares as high as 25%, reflecting greater reliance due to the lack of alternative modes of transport.

2. Limited Impact of Free Bus Schemes

• Free bus rides for women, launched in states like Delhi, Tamil Nadu, Karnataka, Punjab, and Telangana, aimed to empower women, improve mobility, and enhance access to employment and education.

• However, Chart 2 reveals that rural areas didn’t benefit equally. While urban women saw a reduction in bus expenditure (e.g., -10.1% in Delhi), rural women experienced mixed results. For instance:

  • Karnataka rural saw a +7.2% increase in bus expenditure.

  • Telangana rural saw a -0.9% decrease, but urban areas saw a better reduction at -6.9%.

• This suggests urban-focused policy implementation, with rural connectivity gaps remaining unaddressed.

3. Lack of Bus Supply in Rural Areas

• The availability of buses is skewed:

  • India has 1.5 lakh buses.

  • Urban areas get an average of 60 buses per lakh people.

  • Rural areas lag with only 15 buses per lakh.

• Many states that provide free services still lack sufficient bus numbers. For instance:

  • Telangana, Tamil Nadu, and Karnataka offer free rides but do not meet the recommended bus-population ratio.

  • Punjab, Uttar Pradesh, and Odisha are significantly below par.

4. Inadequate Correlation with Workforce Participation

• One would expect better transport access to correlate with higher non-agricultural workforce participation—but Table 3 from the survey data negates this assumption.

• States with high workforce participation, like Delhi (77.1%), Kerala (72.7%), and Punjab (62.1%), have relatively moderate to high bus expenditure shares (17–25%).

• In contrast, states with low workforce participation, like Chhattisgarh (36.1%), Madhya Pradesh (34.4%), and Uttar Pradesh (44.2%), also report low bus use, indicating poor access rather than lack of demand.

Alternative Approaches

1. State-Level Electric Bus Deployment

• States can reduce operational costs and enhance frequency by shifting to electric buses, especially for rural and peri-urban routes.

• This move can lower fares and increase availability, making public transport viable and frequent even in less dense regions.

2. Integrated Transport Planning

• Free bus schemes must be integrated into a larger mobility ecosystem, including rural road development, bus depots, last-mile connectivity, and timely schedules.

• Digital ticketing systems and real-time GPS tracking can be extended to rural routes to boost reliability and trust.

3. Gender-Sensitive Planning

• Although free bus rides for women is a gender-friendly move, its urban-centric focus limits impact.

• Rural women still face challenges like:

  • Lack of early morning or late evening services.

  • Safety concerns.

  • Poor connectivity to schools, hospitals, and workplaces.

• A gender-inclusive transport policy with better rural outreach and safety measures can close this gap.

4. Investment in Rural Mobility Infrastructure

• To bridge the rural-urban divide, the government must:

  • Increase budget allocation for rural buses.

  • Introduce special bus schemes for farmers, women, and students.

  • Build smaller intermodal hubs connecting buses with autos, e-rickshaws, and bikes.

Challenges and the Way Forward

A. Challenges

1. Budget Constraints: State transport corporations already face losses; running free services on thin rural routes adds to financial stress.

2. Infrastructure Deficit: Many rural roads are unpaved or poorly maintained, making bus services erratic or unsafe.

3. Monitoring & Evaluation: Lack of data transparency and real-time monitoring means schemes often fail to reach intended beneficiaries.

4. Service Quality: Irregular timings, overloading, and low frequency deter consistent use in rural areas.

5. Lack of Collaboration: Absence of coordinated planning between central, state, and panchayat-level transport bodies.

B. Way Forward

1. Audit and Rationalize Schemes: Regular evaluation of free bus schemes is needed to assess impact, improve routing, and ensure last-mile connectivity.

2. Subsidy Diversification: Instead of just free rides, offer targeted transport vouchers or subsidies based on income groups.

3. Public-Private Partnerships (PPP): Involve private bus operators for fleet expansion, especially on unviable rural routes.

4. Women-Focused Rural Mobility Cells: Set up rural transport cells focused on women’s mobility and safety.

5. Leverage Digital India Tools: Use GPS, data analytics, and mobile apps to design smarter and more responsive rural transport systems.

Conclusion

The findings of the HCES 2023-24 highlight an urgent need to rethink and reorient India’s transport policy, especially for rural populations. While free bus schemes are a positive step, their limited rural penetration, coupled with low bus availability and infrastructure challenges, weakens their overall impact. Addressing this urban-rural divide requires a holistic, data-backed, and inclusive transport strategy that not only reduces economic burden but also promotes equitable access to opportunities, particularly for rural women.

If India is to truly celebrate its poverty reduction achievements, it must ensure that mobility — a critical enabler of livelihood and development — is accessible, affordable, and inclusive for all, regardless of geography.

5 Key Questions & Answers

Q1. What does the HCES 2023-24 reveal about transport expenditure in rural India?
A: Rural India spends 20.6% of its total conveyance expenditure on buses, compared to only 16.2% in urban areas, highlighting a disproportionate burden.

Q2. Which states offer free bus rides for women, and are they effective?
A: States like Delhi, Tamil Nadu, Karnataka, Telangana, and Punjab offer free bus rides for women, but benefits are mostly urban-centric due to lack of sufficient rural bus supply.

Q3. Why is there low bus usage despite free schemes in rural areas?
A: Due to limited bus supply (15 per lakh population in rural vs. 60 in urban), poor infrastructure, and lack of last-mile connectivity.

Q4. Is there a link between transport access and workforce participation?
A: The survey shows no significant correlation between per capita bus expenditure and non-agricultural workforce participation.

Q5. What should be done to improve rural mobility?
A: Introduce electric buses, build rural transport hubs, offer targeted subsidies, expand PPPs, and use tech-driven monitoring for effective last-mile service delivery.