• This Q&A tells you how New York City is governed, viability of promises made, challenges for Zohran Mamdani and digitization ideas that the mayor elect can consider adopting from India. 

Many sections of the media in India covered Zohran Mamdani’s (ZM) election for New York (NY) Mayor as if it were the U.S. Presidential election. Leftists, Socialists and Secularists were happy with his victory. Some called it New York’s Arvind Kejriwal movement. 

It is one thing to win an election, even if based an excellent campaign, and another to execute i.e. implement the promises made and bring about change. Every country has a different system of governance so this article explains the system in the U.S. comparing it with India where possible and challenges that Zohran might face. Unlike in India, a NY Mayor is the CEO of the city.

Many in the media call ZM, NY’s first South Asian Mayor. The words ‘South Asia’ is a post 1990 construct. The correct description is ‘Indian Sub-continent’. ZM’s father was born in Uganda. At best he is of Indian Origin because his mother is Indian, Sanatani Punjabi. 

To make it simpler, presented in a Q&A format.

1. Is New York City an independent state in the U.S.?

NY is part of New York State. “Manhattan is described as the economic and cultural center of the U.S. and is home to the United Nations Headquarters. Wall Street, in Lower Manhattan, has been called the financial capital of the world, and is home to the New York Stock Exchange and NASDAQ.” 6

The state capital is Albany. The Governor of NY State is Democrat Kathy Hochul.

2. Which areas are part of New York City?

There are five areas/boroughs namely Manhatten, Brookly, Queens, the Bronx and Staten Islands.

3. What is the population of NY?

As of July 2024 it was 8.48 million. Like India’s National Capital Region (NCR) attracts people from adjoining areas to New Delhi so is the case with NY. Local sources state that when one includes such people, the population is app 16 million.

4. What is the Mayor Responsible for?

Mayor has Financial, Administrative, Appointment responsibilities. Read more Here The mayor’s office administers all city services, police and fire departments including most public agencies.

Unlike in Delhi where police is under the control of the Central (federal) government in NY police comes under the Mayor. Hope ZM does not use this power to create problems for foreign leaders who visit NY for United Nations events.

An important part of the Mayor’s job is to manage relationships with the federal and state governments. If he gets into a conflict with the Federal government like Kejriwal, conflict with Trump administration is inevitable. Further, he needs NY State legislature approval for introduction of new laws and changing income-tax rates etc. 

ZM has to build good relations to get his work done. He should fulfil promises made and not aim to become state Governor or President, a la Kejriwal. 

5. What is NY Budget?

App $ 112 billion or app Rs 99,000 crores. “The New York mayor enjoys tremendous powers, supervising a staff of over 300,000 people, a budget exceeding $120 billion, and a GDP of $1.3 trillion, J C Polanco, a professor at the University of Mount Saint Vincent in the Bronx and a political expert, told CBS News.” 1

6. What are rent stabilised apartments in NY?  

For lower income groups, the local administration convinces builders to build rent controlled apts. Here rents are controlled by the government with increases of up to 5% p.a. Increase is recommended by a Committee. With time, even these rents have become expensive. 

ZM said that he would freeze the increases and increase the number of rent stabilised apartments.

ZM has the authority to appoint Members of the Rent Control Board. Yet, all would have follow process and freezing rents might not be a cakewalk.  

7. So far, Indians heard of NY Metro. How are buses used?

Local sources say that since rents in apartments close to the station are higher, lower income groups prefer to stay far away from the station. It is for such travel that buses are used. ZM proposes to make bus travel free.

8. What is BODEGA, Deli 

Bodega are small corner shops that sell fresh fruits, snacks and perhaps fresh food like sandwiches. They are mostly run by Indians, Pakis and Spanish. White Americans usually do not run them.

9. Does NY City levy Income-tax?

In the U.S. citizens pay income-tax to the Federal and State governments with NY being an exception. Here, residents of NY pay income-tax of app 4%.

ZM has promised to increase the tax-rates for the rich. “However, the mayor cannot unilaterally approve tax increases and needs the support of the Albany state legislature.”

Note that NY State Governor Kathy H is up for re-election in 2026.

10. What are the Key Promises made to people of NY?

a. Free Bus Service for all.

Note that the Metropolitan Transportation Authority manages buses for NY and New Jersey. Not wanting to fund a freebie, the MTA might insists that the NY City Council funds the freebie from its own resources.

b. ZM plans to freeze the rent for rent-stabilised tenants, as explained move. It means that even the 4-5% rent increase shall not take place. ZM also plans to construct two lakhs new units over the next 10 years.

How this would affect the maintenance of these buildings is a question mark. If ZM can construct two lakh units in four years, would be a big positive. If new building become immigrant hubs, then ZM runs the risk of being labelled as Mayor of the Immigrant community.

c. ZM plans to introduce a new law to increase the minimum hourly wage in NY to $ 30 by 2030

The NY Mayor has a four-year term so ZM might use this as a poll plank for 2029 election in case he contests.

This will increase cost of living for those who live in NY. A friend who lives in Queens would then need to pay her home staff @ 30 as against a rate of $ 16.50 as on 1/1/25. To cope with rate increase residents would reduce the number of hours or cut down on consumption expense.

About 25% of NY’s work force is unionised. If having a Socialist Democrat Mayor encourages the unions to make unreasonable demands/strike, it could result in a flight of capital. Other States in the U.S. and Dubai/London are waiting.

d. Start City owned Grocery Stores

This is the equivalent of Ration Shops in India. It takes time and energy to set up this system from scratch. Perhaps, he can outsource this work to an Indian company.

e. Taxing the Rich

“ZM has proposed to fund proposals like the free and fast buses and universal childcare by increasing the state’s corporate tax rate to match the New Jersey tax rate of 11.5%, which would bring in $5 billion. He also plans to raise income taxes on the wealthiest 1% of New Yorkers who earn more than $1 million per year to a flat 2% tax.”

A Business Standard Editorial of 6/11/25 says that ZM proposes to impose a 2% tax on incomes above $ 1 million.

ZM would need approval of the State Legislature for this change. Unlike in India where income-tax rates are the same across the country, in the U.S. residents pay tax to both the federal and state governments. The tax rate varies from state to state with some states levying no tax. Read about that Here

Increase in tax rates might motivate NY residents to move to states that have lower income-tax rates.

f. Childcare at no cost

“ZM promised free childcare for every New Yorker aged 6 weeks to 5 years, as well as increasing the wages of childcare workers to bring them at par with public school teachers.” 1

The challenge lies in execution and funding the increases in wages. If the childcare workers are only immigrants, there might be resistance from a section of the population.  

11. Increasing New York GDP

In terms of state GDP rankings in the U.S., NY State is second behind California in 2024. Source It was number one till the mid-1960s. Can ZM reverse the trend?  

If ZM wants funds to fulfil promises, focus attention on increasing NY GDP and attracting more Tourists. 

12. ZM must explore using Direct Benefit Transfer (DBT)?

ZM might like to understand how DBT works in India. No need to issue cheques, just instruct the banks and a beneficiary account is credited within hours. This way ZM is sure money has reached the beneficiary and subsidy funded directly from the City Budget. 

13. In order to reduce transaction cost for credit card payments, ZM must explore implementing UPI in New York City.

14. What are the sources of revenue for NY?

“New York City's main sources of revenue are a mix of taxes, including the real property tax, personal income tax, sales tax, and general corporation tax. It also receives substantial revenue from state and federal aid, such as New York State education aid, and from "miscellaneous revenues" like water and sewer charges, fines, and fees for licenses and permits.” 6

ZM can increase revenues by reducing leakages and plugging loopholes. 

14. New York State Constitution

“The governor is restricted, however, by a number of independently appointed or elected officials. The Board of Regents, for example, which presides over education, is appointed by the legislature. An independently elected comptroller acts as auditor for both state and local governments. The bicameral legislature comprises a Senate of 62 members and an Assembly of 150. Members of both houses are elected for two-year terms. Each house has standing committees concerned with issues of public policy.” 5

ZM has to learn to navigate these governance structures.

15. Ground Zero Mosque

During his campaign ZM focused on day to day issue and not a Muslim agenda. If he pushes for making of an Islamic Centre or Mosque close to Ground Zero, it could polarise the population. Read more Here

The euphoria over ZM’s victory reminds me of how some Indians felt after Arvind Kejriwal’s victory in the Delhi state elections (I call it Municipal elections). Hope ZM does not behave like AK. 

References and Also read

1. Mayor Responsibilities and Challenges – Indian Express

2. Comparing the state of democracy in India and USA

3. Inheritance and Income-Tax Rates in USA

4. Explained – US Economic Data

5. Britannica.com New York State

6. New York Counties site

7. Powers of NY Mayor – CBS News

8. Indian Mayors have no Powers to lead Cities

9. Why India needs to empower its Mayors – HT – “In the Indian context, the 74th Amendment to the Constitution provided for decentralisation of powers to urban local bodies (ULBs) as early as 1992. This should have empowered municipalities and municipal corporations, with the chairperson (in a municipality) and the mayor (in a city) having substantive executive powers. That transfer of power did not happen: The mayor remains mostly a ceremonial figure, an ineffectual office with real authority resting with the bureaucracy.”