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Small Is Smart: Zoho’s Sridhar Vembu Proposes Radical Fix for India’s Urban Gridlock

Updated: July 05, 2025 18:23

Image Source : Iamrenew.com
Zoho founder Sridhar Vembu has sparked a national conversation with his bold take on India’s traffic crisis. In a recent post, the ₹50,000 crore tech visionary argued that India’s megacities are economically unsustainable—and that the solution lies in downsizing urban ambition.
 
Key Highlights:
 
- The Infrastructure Equation
 
Vembu explains that infrastructure costs don’t scale linearly with population—they grow exponentially. As cities swell, the per capita cost of maintaining roads, transit, and utilities skyrockets, draining public funds and inflating living costs.
 
- Tokyo as a Cautionary Tale
 
He cites Tokyo’s 34 million population as a warning: despite world-class infrastructure, the city faces crushing public debt and declining birth rates—proof that bigger isn’t always better.
 
- The ‘Optimal City’ Model
 
Vembu proposes a sweet spot: cities with 100,000 to 250,000 residents. These “towns” offer the benefits of urban clustering—jobs, innovation, connectivity—without the crushing infrastructure tax or social fragmentation.
 
- Zoho’s Rural Blueprint
 
The philosophy isn’t just theoretical. Zoho’s offices are strategically placed in smaller towns like Tenkasi, Tamil Nadu, where the company has built a thriving tech ecosystem. Vembu believes this model can redistribute economic growth and improve quality of life nationwide.
 
- Call for Policy Shift
 
He urges massive investment in public transport and a rethink of India’s urban planning priorities—before traffic and cost-of-living pressures choke the country’s economic momentum.
 
Vembu’s message is clear: India doesn’t need bigger cities—it needs smarter ones.
 
Source: Economic Times, Business Today, DNA India

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