Daily economics of street vendors
How much do Indian street vendors earn
How much do Indian street vendors earn
Average vendor in India earns less than the per capita income of India. A self employed vendor is selling pakodas because there isn’t an option to grow or do something else.
A successful poha vendor in Mumbai saves INR 1 lakh per month. A dosa vendor in Mumbai saves about INR 1.25 lakhs per month. A momo vendor saves about INR 2 lakhs per month. However, these businesses are informal business. They operate without any property rights or licensing. Government authorities fine them or take bribes or raze down their makeshift stalls.
As per the economist Hernando de Soto: For the 5.3 billion who do not have such rights, the implications are stark: people are unable to leverage their resources to create wealth, and their assets become “dead capital” which cannot be used to generate income or growth.
Providing the world’s poor with titles for their land, homes and unregistered businesses would unlock $9.3 trillion in assets. India has about 32 lakh street vendors, with an average earning of INR 50 and above. Government can help unlock billions worth of economic value by formalising the food vending business.