Why travel is so taxing in India.

"India's public transport system is not keeping pace with the auto boom, making commuters shun buses and trains and hop on to two-wheelers and cars," is today's headline. "Compared with a share of 60-80% of passenger trips across major Indian cities in 1994, the share of public transport is expected to reduce to 25-35% in 2018." This is despite very low rates of vehicle ownership in India, with Delhi having the highest number of cars at over 2 million, more than Mumbai, Chennai, Kolkata combined. Delhi had a population of 28 million last year, so only 0.07% of people own cars. Total number of passenger vehicles in India were 29 million in 2015 and is expected to rise to 48 million by 2020. This in a country with a total population of 1,250 million. Out of 54 public bus companies, 47 reported their finances and condition of their fleet in 2015-16. Out of this 47, only 6 are making profits, the rest running at huge losses, which prevent these companies from adding new buses or modernising their fleet. There are just 1.4 buses for every 1,000 people in India, compared to 8.6 in Thailand, 6.5 in South Africa and 6.1 in Russia. Even the US, which has largest number of passenger cars in the world, has 2.7 buses per 1,000 people. Over 30 billion people ride on buses every year in India but losses are in billions of rupees. Most of these companies are owned by state governments which are loath to reduce the number of staff or increase fares, for fear of losing votes. No wonder that 30% of Indians do not travel to work, 22.6% walk to work and 13.1% use bicycles, making a total of 65.7% of people who do not use any form of motorised vehicle. Just 2.7% of people use a car, jeep or van. Whenever any service is in a mess in India it is usually because of government interference and taxes. Taxes contribute 20% to the cost of operating bus companies. The companies, owned by governments, apply for grants to run their operations but these take a long time to come. The list of taxes on vehicles in Delhi is very long. To get its pound of flesh municipal corporations levy taxes and tolls at every opportunity and on every type of vehicle. Exorbitant taxes on jet fuel in driving airlines into losses even as passenger numbers are soaring. "There is a flat/negative growth in bus fleet, modal mix is skewed towards cars and two-wheelers," said a report from AT Kearney. The automotive industry contributes 7.1% to GDP and employs 29 million people. If people stop buying cars it will result in job losses and a massive fall in tax collections. 80% of the cost of each liter of petrol is in taxes. Public transport or taxes, a huge dilemma. No wonder politicians are paralysed.