Singapore and China show that with planning, vision and support, street vending can create jobs, reduce poverty, and even become a source of pride. India has taken some steps in that direction, but much more needs to be done. The crisis is real but so is the opportunity. — Annu Kumari
Street vendors are a familiar part of everyday life in Indian cities. For some, they represent problems such as crowded sidewalks, traffic jams and questions of cleanliness. But for millions of others, they are a source of affordable goods, quick meals and even livelihood. Street vendors aren’t just a problem to be dealt with; they’re also an opportunity to be recognised. What often looks like chaos could be turned into a source of jobs, income and city life with the right policies and a little respect.
Street Vendors as a Problem
Street vending is often associated with poor sanitation. Many food vendors lack access to clean water, toilets or waste-disposal facilities. As a result, customers sometimes face hygiene issues. This problem is real, but it is not entirely the fault of vendors. It reflects the lack of infrastructure and planning in cities. Vendors usually gather in busy areas such as outside railway stations, metro exits, bus stands, or near schools because that is where customers are. Since they lack designated vending spaces, they often block sidewalks and roads. This creates congestion, and pedestrians, commuters, and car drivers complain. However, this is less about vendors being careless and more about cities failing to provide organised vending zones. Besides, street vendors have historically been ignored in government policies. While other sectors receive tax benefits, subsidies and formal recognition, street vendors remain “informal”, which leads to backwardness. Firstly, from the government’s side, street vending is treated as disorderly rather than a source of livelihood. Secondly, from the vendors’ side, they remain economically backward because they earn less, lack bargaining power, and cannot access loans or training.
Street Vendors as an Opportunity
Despite the challenges, street vending provides employment to millions of people who may not have other opportunities. For rural migrants, women and less educated workers, vending is often the easiest way to earn a living by selling food, clothes, or household items. This way, street vendors not only sustain themselves but also support their families.
Another strength of street vending is affordability. Vendors sell products at lower prices than supermarkets or malls which makes them essential for low- and middle-income families. A plate of food on the street may cost only one-fourth of what a restaurant charges. This affordability keeps consumption high and strengthens the urban economy. Street vending is also a pathway to entrepreneurship. Many shopkeepers, restaurant owners, and retailers began their journey as street vendors. It is a low-cost entry point into business, and with training and support, vendors can expand, formalise, and grow into larger enterprises.
A New Challenge for Street Vendors
A new challenge for street vendors is Q-commerce, or quick commerce, where apps like Blinkit, Zepto, and Swiggy deliver goods within minutes. Customers increasingly prefer ordering online rather than walking to a street stall, which threatens vendors’ income. At present, these platforms mainly operate through their own warehouses or “dark stores.” While businesses can register as sellers, the requirements, such as GST registration, bank details and formal paperwork, make it difficult for most small, informal vendors to join. Products are kept in fulfilment centres and shipped from there rather than having vendors deliver straight from their stalls. Street vendors are not included in this model, but it works well for larger, registered sellers. Small indications of change are present, though. For instance, supply chains such as Hyperpure have expressed interest in helping home bakers, vendors, and small food businesses. Still, quick commerce today remains largely warehouse-driven, and the inclusion of informal sellers is more a possibility for the future than a reality.
If a street vendor wants to participate, registration is technically possible, but it comes with conditions: GST numbers, bank accounts, product lists and likely sending stock to a warehouse. The idea of a vendor delivering directly from their stall through a quick-commerce app is not yet mainstream. For policymakers, this gap highlights an opportunity to push for “micro-seller” integration. Thus, Q-commerce does not have to replace street vendors. With thoughtful planning, digital platforms could actually expand their reach, giving them access to new customers instead of shrinking their share.
Learning from Global Models
Singapore offers the best-known example of organised street vending. In Singapore, all vendors are licensed and relocated into hawker centres. Each centre has dozens or even hundreds of stalls, standard furniture and fittings, dedicated staff for cleaning and maintenance, and locations close to residential areas for easy access. This system ensures hygiene, order, and customer convenience, while also providing vendors with fair earnings, dignity, and legal recognition.
China also provides valuable lessons. There, the government reintroduced street vending as a way to create jobs and reduce poverty. A pilot project in Chengdu created 100,000 jobs and encouraged entrepreneurship. The model later spread across the country. Big companies such as Alibaba even supported vendors by offering them goods at cheaper prices. This showed how public policy and private companies can work together to strengthen vending.
From both Singapore and China, India can learn valuable lessons. Instead of treating vendors as disorderly, the country should:
- Create designated vending zones near busy areas,
- Organise vendors into collective centres with proper hygiene facilities,
- Provide support from companies, technology, and training, and
- Integrate street vending into urban development plans
If India implements these steps, street vending could become a major source of economic benefits, including job creation, consumer welfare, urban order, government revenue, and entrepreneurship.
Can India Turn the Street Vendor Crisis into an Opportunity?
Street vendors are a visible part of every Indian city. From morning tea stalls to late-night food carts, they are the everyday entrepreneurs who keep urban life affordable and lively. Yet, instead of being celebrated, they are often seen as a nuisance — blamed for traffic jams, dirtiness and disorder. For decades, governments have treated them as informal and illegal, subject to eviction and harassment.
But there is another way to look at this. Street vending, if managed well, can create jobs, boost entrepreneurship, and keep cities vibrant. The question is: can India follow the path of countries like Singapore and China, and turn this so-called “crisis” into a real economic opportunity?
Where India Stands
India has taken some steps to support street vendors, but it is not yet at the level of Singapore or China in turning the sector into a true opportunity. The Street Vendors Act, 2014 and the PM SVANidhi loan scheme are good beginnings. The Act gives vendors legal recognition and calls for vending zones, while PM SVANidhi offers loans and encourages digital payments. These measures show that the government sees vending as part of the economy, not just a problem. However, implementation has been slow and uneven. Many cities have not completed proper surveys or created well-managed vending zones. Vendors still face harassment, eviction, and lack of basic facilities like water, toilets, and waste disposal. Unlike Singapore’s hawker centres, India does not yet have clean, organized vending hubs. And unlike China, where vending policies created jobs on a massive scale and even got support from big companies like Alibaba, India has not fully linked its private sector with vendor development.
This is a missed opportunity. India has over 10 million street vendors. If each vendor supports a family of four, that means nearly 40 million lives depend on this sector. Recognizing and empowering them could reduce unemployment, increase affordable goods for the poor, and create a culture of entrepreneurship at the grassroots level. So, while India’s policies are a step in the right direction, the transformation is incomplete. To truly turn the “street vendor crisis” into an opportunity, India would need stronger implementation, better urban planning, and active partnerships with technology and private companies. In short, the intent exists, but the results are still far behind the Singapore or China models.
Conclusion
Street vendors are not going away. They are too important to our cities and too central to the survival of millions of families. The choice is simple: continue to treat them as a problem, or recognize them as an opportunity.
Singapore and China show that with planning, vision and support, street vending can create jobs, reduce poverty, and even become a source of pride. India has taken some steps in that direction, but much more needs to be done. The crisis is real but so is the opportunity.
