Several cities in India including Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, have begun to take steps to implement fiscal measures to address the problem of air pollution and congestion. Though still very nascent, this is a unique and a very important step forward to use market based instrument to influence consumer behaviour and stimulate investments in pollution control efforts and clean technologies. Fiscal measures can help to cushion the cost of transformation, -- improve fuels and technologies and influence people to choose more sustainable travel options like public transport.