Dawn of Night Cities: Analyzing the Sustainability of the Night Economy in Urban India

By- Ayush & Soumya, 3rd Year Students, NLU Delhi

Introduction

According to a recent estimate, New York accrued 35.1 billion dollars through its night-time economy, and approximately 700 million dollars in its local revenue. Similarly, the nighttime economy of the UK accounts for the fifth biggest industry in their economy, generating a revenue of close to 66 bn pounds a year. The issue that this article answers, is whether this success can be replicated in India, with its unique challenges and opportunities. To do so, the authors elaborate on what a night time economy means, then expand upon the current benefits and challenges, and finally conclude with the evaluated potential of nighttime economies in India. 

What is the Night Economy?

It remains inconclusive, but the term ‘night-time economy’ is believed to have been coined in Britain during the 1970s to revitalise manufacturing and industrialisation. While no standard definition for a night-time economy exists, most can agree that it refers to all the economic activities occurring between 6 p.m. in the evening to 6 a.m. in the morning. Some scholars also distinguish between ‘evening economy’, ie, economic activities between 5 pm - 10 pm and ‘night time economies’, ie, commercial activities after 10 p.m. Irrespective of the timings, the consensus for defining night time economies is the economic activities happening overnight. The same shall be employed for the purpose of this article. 

An Economic Powerhouse

The night time economy certainly has a lot to offer and the most that it offers is in terms of money. Night time economy creates opportunities for increased revenue opportunities that can be continued in the night. There is burgeoning data to show that even if the closing hour of restaurants at Cafe Delhi Heights was delayed by an hour, the cafe chain reported an increase of 25% of their revenue. It can be inferred from such an instance that the potential of untapped revenue from the night-time economy remains under-explored and would be in the interest of the business persons to work towards it. 

Night time economy also offers a great chance at being a tourist attraction and consequently generating revenue. Such tourist attractions can come in the form of overnight food destinations (very often seen in Indian cities such as Indore), shopping complexes (in cities such as London, Amsterdam) etc. Since night-time economies are an exception, rather than a norm as of now, their functioning can offer a boost to the tourism industry. 

As the opportunities for revenue increase, so would the need for manpower to continue the commercial activities at night. This would directly translate into more job opportunities. This has been clearly seen in various parts of the world. For instance, London is reported to have generated 723,000 jobs in its night economy and is forecasted to add 66,000 jobs more by the beginning of 2026. 

Bolstering safety

The bustling night economy also has an implicit advantage of making the cities safer. As the economy increases its operation throughout the night, this increases the demand and thereby  availability of safe transport and commutation. As the interaction between the citizens increases at night, the vigilance and the possibility of unattended spaces with an increased likelihood of crime would eventually decrease. Campaigns such as ‘Don’t Drink and Drown’ show the commitment for safety. While such campaigns are broadly limited to pubs and bars open overnight, such efforts can be translated as a symbol of growing awareness towards vigilance. Such awareness has been given a thrust because of a night economy, rather than the emergence of this economy after such efforts were taken. Therefore, in spite of criminal activities being a concern, there is a high likelihood of circumstances  turning safer.

‘Invisible Hand’ assisting the problems of  Night Time Economy

Night time economy follows the fundamental concept of the ‘invisible hand’ of market forces pertaining to quite many issues arising out of such an economy. This means that the issues such as jobs, and revenue would be attended to once a night time economy starts functioning. The market forces would then incentivise creation of safety mechanisms, and a need for liberal governmental regulations once there is a demand for more economic activity. Essentially, the way the market works, on the plank of profits, would potentially align all the issues in the direction of economic development and creation of profit once the initial thrust to the Night Time Economy is given. 

All that glitters is not gold?

While a night economy might strike as a revenue machine for the state and private businesses, it comes with its own set of concerns. They get aggravated especially in the Indian context, where socio-legal factors bog down the prospects of such growth. We explore a few significant challenges which challenge the imagination of a full fledged night economy in urban India.

Restrictive Government regulations

The most fundamental challenge with the genesis or evolution of a night economy for a city is a restrictive legal regime. This challenge is inherent to Indian cities, where the government is reluctant to open up the economy after daytime. This reluctance can be traced to the apprehensions of the law enforcement agencies while permitting any activity which falls within the bracket of ‘night-life’. Per contra, a developed administrative system governing the city after daytime has worked favourably in many other cities. For instance, the much-studied system of a night-mayor assuages the fears of potential law and order situations in cities such as Amsterdam or Paris.

Another foreseeable issue with government regulations can be a segmented licensing regime. Multiple local authorities within a particular district may develop an autonomous licensing regime, indirectly deterring new business from venturing into the night economy space. A parallel problem is seen in London, where each of its 32 local authorities have set up an independent licensing regime. This might end up creating a monopolistic market situation, while benefiting certain businesses which already possess the resources of sustaining in the night economy. While it is obvious that this model will surely ensure a rise in revenues, it should be noted that the sustenance of public infrastructure at night would be at the expense of the taxpayer. This would also mean an increasing hole in the pocket of the diligent taxpayer, for amenities which they may or may not avail of.

Labour Laws: A Ripple Effect

A crucial spillover of the legal vacuum in regulating the night economy would be most severely observed in labour laws. Coupled with increasing platformization of work, the workers who would be required to contribute to this model may not fall within the traditional boundaries of ‘employees’, and would be effectively excluded from protection under labour laws. From a gendered perspective, this further exacerbates the existing structural fault lines within the society, given the precarious conditions of female gig workers and labourers. Moreover, such a model would have high attrition rates, and may not be sustainable in the long run. Such spillovers can only be countered with policy actions which incorporate a broad spectrum of the society, and develop strategies to integrate public and private space.

Even if adequate policy measures are adopted, a sociological lense suggests that the nature of labour during the night would be vastly different. Night time economies offer flexibility, but at the cost of economic marginalisation. It has been argued that “employees expend emotional labour. Their work is a mix of mental, manual and emotional labour”. In the context of the night economy, these factors must be evaluated to prevent alienation of work and marginalisation, and the mental well being of workers should be effectively addressed.

The Impact on Urban Lifestyle

A study on the night economy of Kuala Lumpur revealed how extensive commercial activity at night had adversely affected the lifestyles of residents in the context of comfort, convenience and safety. A poorly regulated and scarcely policed night economy would play an incremental role in creating criminogenic factors in cities. Given the rising crime rates in Indian cities, such factors may add to the workload of the already overworked law enforcement agencies. Further, even mega cities like Mumbai and Delhi lack infrastructure such as adequate street lamps, safe and publically accessible restrooms, police checkposts, and medical aid. These factors can act as a huge disincentive for the policymakers to push for the night economy, as they create potential hotspots for crime and other anti-social activities. 

Alongside a micro impact on individual lifestyles of city dwellers, even a partially operational night economy can lead to an exponential rise in the energy consumption on a macro level. If such energy is majorly sourced from non-renewable sources (as is usually the case), a direct detrimental impact would be seen on the environment. Similarly, other pollution concerns such as sound and light are also as legitimate as the lack of regulations for the same. Increased noise levels affecting the ‘right to sleep’, or city-glares affecting astronomical observatories, along with other urban quandaries seem foreseeable concerns with a city that would never sleep. 

As the above analysis shows, India has a long way to go before a fully functional night-time city can be imagined in any of its cities. However, some recent trends are pointing towards the government’s eagerness to explore the untapped potential of the night economy of Indian cities. Easement of legal hurdles for opening up shops 24/7 in Mumbai and Bangalore are cases in point.

Although this trend could be looked at optimistically, the government should bear in mind that unless the underlying social and security concerns are  addressed in a concrete  manner, no model of the night economy would be sustainable. Academic literature has the potential to offer some solutions such as creating buffer zones, converting land from commercial to housing, using one way traffic systems, increasing gated/guarded neighbourhoods, etc.. It therefore becomes crucial that night economies are studied in a socio-legal context and treated as an essential part of urban studies in India.