By Kavita Mistry 
The Indian government has strongly objected to a proposal seeking to ban petrol and diesel vehicles in Mumbai. In a caution issued to the Bombay High Court, officials warned that an abrupt transition could severely impact the citys economy and disrupt daily life.
Concerns Over Economic Disruption
The proposal to phase out fossil fuel-powered vehicles gained momentum due to growing concerns over Mumbai’s dangerous air pollution levels. The transport sector alone accounts for nearly 30% of the city’s particulate emissions.
However, the Maharashtra government, in a response filed in April 2025, argued that an immediate shift would be disastrous. Over 60% of Mumbai’s 4.5 million registered vehicles are still petrol or diesel powered, including nearly 90% of commercial transport vehicles.
Removing these vehicles from the roads overnight would halt vital commercial activities, severely affecting the ports, markets, and gig economy that Mumbai relies on.
Impact on Supply Chains and Employment
The government’s affidavit highlighted that Mumbai’s economy is deeply connected with neighbouring states like Gujarat and Karnataka. Diesel trucks from these states deliver almost 80% of the citys food, fuel, and construction materials.
An abrupt ban would cut off these supplies, driving up the prices of essential goods and putting small businesses at risk. Auto dealerships and industry experts have also warned that such a move could lead to mass layoffs. Maharashtra’s automobile sector currently provides direct employment to more than 1.2 million people.
A Need for Gradual Transition
While the government acknowledges the urgent need to tackle pollution, it emphasises that the transition to cleaner fuels must be gradual and carefully planned. Officials fear that without proper preparation, the move could damage the economy more than it helps the environment.
The debate continues as stakeholders call for a balanced approach that protects both public health and economic stability.