India's Bicycle Economy
From Bicycles to Motorbikes
Why rising incomes and cheap motorbikes pushed many Indians away from bicycles, and what this means for congestion, pollution and cycling's image.
Many Indians shifted from bicycles to motorbikes.
Why
- Rising incomes.
- Cheap motorbikes and EMIs.
- Speed and comfort.
- Status: bicycles came to be seen as a poor person’s vehicle.
Effects
- More pollution and congestion.
- Less exercise.
Surveys
Census data showed cycling was more common among lower-income workers.
Image
Cycling is gaining fitness appeal among urban middle classes.
Economics
Bicycles can be an inferior good: demand falls as incomes rise.
The upgrade
A factory worker who rode a bicycle for years buys a motorbike after a pay rise.
Thinking cycling declines due to lack of interest
Rising incomes and status play roles.
Key takeaways
- Rising incomes pushed people to motorbikes.
- Bicycles gained a low-status image.
- This adds pollution and congestion.
- Bicycles can act like an inferior good.
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