Full-fare Subsidies for Women in Local Buses Yield Better Results in Delhi and Karnataka
A recent study reveals that full-fare subsidies for women on local buses in Delhi and Karnataka have led to significant improvements in women’s mobility and employment, outperforming partial subsidies in Maharashtra.
Bus SubsidiesWomens MobilityUrban TransportFarefree SchemesEconomic ImpactReal Estate MaharashtraJul 26, 2025
In Karnataka and Delhi, under state government schemes, women can travel on buses free of cost. In contrast, Maharashtra’s Mahila Samman Yojana offers a 50 per cent concession on tickets on all state buses. Kerala and West Bengal do not have any such subsidies.
The study shows that a full subsidy on intracity bus travel is highly beneficial to urban women in terms of savings and employment. Partial intercity travel subsidies like the one in Maharashtra have failed to address the daily commuting needs of many women. The study also challenges the belief that fare-free schemes are fiscally unviable, stating that these schemes generate strong economic returns and unlock suppressed demand.
Key findings of the study include:
1. 42% of women on average in Maharashtra’s three largest cities reported no change in their travel behaviour despite the subsidy from the Mahila Samman Yojana.
2. Only 10% of women on average in Mumbai, Pune, and Nagpur reported being able to travel longer distances after the scheme’s implementation, compared to 32% of women across cities with full-fare subsidies like Delhi, Bengaluru, and Hubballi-Dharwad.
3. More than one in four women across cities with full-fare subsidies like Delhi, Bengaluru, and Hubballi-Dharwad reported switching to buses after their states removed bus fares.
4. 26% of women on average across cities with both full-and partial-fare subsidies reported feeling safer in buses after the introduction of these schemes.
The study argues that subsidies on buses within the city are more aligned with the travel needs of urban women compared to intercity bus subsidies. It states, “In full subsidy cities, women save consistently over half of their monthly transport expenses. These savings offer meaningful budget relief, allowing women to redirect resources toward essential household needs such as food, healthcare, and children’s education. In cities such as Nagpur and Pune, where fare subsidies apply primarily to intercity or long-distance routes, average monthly savings range from ₹409 to ₹538. These limited outcomes are due to a misalignment between subsidy coverage and women’s actual travel patterns, as most of their trips occur within the city limits and are linked to work-related responsibilities.”
Ranajit Gadli, Programme Director at Parisar, an NGO working in the field of urban mobility, said, “Subsidies on intercity travel help very little with the everyday reality of getting to work, caregiving, or running errands. The demand is for complete fare subsidies on regular, daily routes. Pune and Mumbai’s recent fare hike and the ridership drop after it are important indicators of the role of fares in accessibility to public transport in general. Also, the fact that cities don’t have gender-specific data limits our ability to gauge the impact of such decisions on women.”
Analysing the findings of the study, Urban Transport Planner Bhaumik Gawande told The Indian Express, “The positive impact of fare subsidy schemes is most evident when buses are used to access employment. In cities like Delhi, Bengaluru, and Hubli, fully subsidized urban buses have empowered women to take up jobs and redirect savings toward essentials like education and healthcare. In Maharashtra, while MSRTC’s partially subsidized intercity buses offer some benefits within the MMR region, the impact is limited in cities like Nagpur and Pune, where such buses are not primary modes of work travel. To ensure fiscal sustainability and equity, intercity subsidies should focus on employment-linked, student, or senior citizen passes.”
The study suggests that Maharashtra could expand its scheme to cover travel within the city to address the mobility needs of urban women. However, it also warns that full subsidies have triggered operational strain—overcrowding, compromised safety, and negative staff attitudes—due to increased ridership without proportional investment in capacity expansion.
Frequently Asked Questions
What are the key findings of the study on bus subsidies for women?
The study found that full-fare subsidies for women on local buses in cities like Delhi and Bengaluru led to significant improvements in women’s mobility and employment, while partial subsidies in Maharashtra had limited impact.
How do full-fare subsidies benefit urban women?
Full-fare subsidies allow women to save a substantial portion of their monthly transport expenses, which they can redirect toward essential household needs such as food, healthcare, and children’s education.
Why are partial intercity travel subsidies less effective?
Partial intercity travel subsidies fail to address the daily commuting needs of many women because most of their trips occur within city limits and are linked to work-related responsibilities.
What are the challenges of implementing full-fare subsidies?
Full-fare subsidies can lead to operational strain, including overcrowding, compromised safety, and negative staff attitudes, due to increased ridership without proportional investment in capacity expansion.
What does the study suggest for future policy?
The study suggests that states like Maharashtra could expand their subsidy schemes to cover travel within the city to better address the mobility needs of urban women.
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