Indian cities face a multitude of challenges, and among them is the persistent issue of unregulated streets and street vending that demand better management and organisation. The recent initiative of the Union ministry of housing and urban affairs (MoHUA) to create vending “haats” holds potential to deliver broader benefits, including enhanced pedestrian infrastructure, improved food systems, and climate resilience.
In the Union Budget 2024-25, the government introduced a scheme to develop 500 street hubs, or haats, over the next five years. This initiative builds on the success of the innovative PM SVANidhi Scheme, a micro-credit facility launched in 2020 to help vendors recover from Covid-19 losses, which till date has supported over 7.9 million vendors.
Street vendors in India, estimated at over 15 million, make up roughly 10% of urban workers and are integral to the urban economy, generating a daily turnover of hundreds of crores. Street vending offers low-income jobs for migrants and urban poor, supports small industries, and contributes to affordability and local revenues, paying both official and unofficial fees to support their livelihoods. Street vendors are also the original “green enterprises”, operating with minimal emissions compared to brick-and-mortar establishments, championing climate-friendly principles long before environmental concerns became widespread.
However, outdated governance practices persist, with street vendors often being labelled as illegal or encroachers. The other stumbling block remains the argument of lack of space in cities that restrict spatial allocation for street vending, abetted by archaic planning laws that do not recognise informal livelihoods like street vending. In this context, the recent government initiative is a much welcome step, but it can only succeed if fundamental principles and non-negotiables are considered in design and future implementation of street vendor haats.
The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, is one of the most progressive policies globally which protects vendor’s rights, regulates vending, and sets a benchmark for inclusive urban planning. The SV Act offers an excellent foundation, and its principles can guide the success of the street vendor haat project.
First, assimilate the spatiality of vending. Thus, emphasise that vendors should not be moved from the natural markets – “places where sellers and buyers have traditionally gathered”. The proposed scheme should aim to formalise and upgrade these existing natural and weekly markets, using urban design solutions that are organic to the city/region, avoiding imported western models that may not suit the local context. By providing essential amenities such as sanitation, waste collection, drainage, and lighting, the street vendor haat designs will enhance the vibrancy and authenticity of local markets.
Second, the proposed scheme should not be misunderstood as an initiative for the construction of markets or shops. Accommodating street vending on existing streets and pavements will be more cost-effective and reflect the true nature of street vending. As suggested by the name of the SV Act, street vendors should remain on or along streets, not inside malls or buildings.
Third, active participation of the vendors is key. The SV Act establishes a novel participatory governance structure through the creation of Town Vending Committees (TVCs) that include representatives from different local government departments such as health, planning, police, and the wider public. Importantly, the Act mandates that street vendors make up 40% of the TVC members. Involving vendors in the design and management of the haats at the local level will foster ownership, cleanliness, and sustainability for vibrant, successful markets.
Fourth, the street vendor haats must be inclusive, especially focusing on marginalised groups. Addressing gender concerns and ensuring participation of women vendors can make the project gender-sensitive, empowering women and advancing SDGs. Creating spaces for women vendors and promoting locally produced goods will support sustained urban livelihoods and promote social justice principles.
Fifth, the street vendor haats should aim for a multiplier effect in cities by ensuring that cities apply for the scheme with a holistic street vending plan, as mandated by the SV Act. A key aspect of this could be promoting pedestrianisation to complement street vending, and showcasing locally produced and regional cuisines, thereby enhancing the overall urban experience.
Lastly, in times of increasingly visible climate crisis impacts in cities, the design of street vendor hubs should include green infrastructure, shading plans, and provisions for renewable solar energy use, creating zero-waste, sustainable zones that contribute to environmental resilience.
The success of haats hinges on creating a framework that is not a rigid, top-down project but one that evolves from the principles of the SV Act. In doing so, it can drive a much-needed transformation of urban streets that are inclusive not only for street vendors but also of livelihoods, pedestrians, diverse cultures, and climate resilience. Street vendor haats, therefore, hold the potential to demonstrate how progressive legislations, when paired with swift and effective policy innovations, can lead to successful implementation and lasting change in Indian cities.
Shalini Sinha is Asia Strategic Lead, Urban Policies Programme, WIEGO, a global network working with informal workers. Aravind Unni is an urban practitioner and researcher.The views expressed are personal
