This article addresses from an Indo-Swedish perspective issues of the development of transport systems taking its examples from Delhi and Stockholm. The introduction of the first bus rapid transport corridor in Delhi and the congestion tax in Stockholm is presented and discussed in terms of modernisation and sustainable transport. The authors explore the perceptions of politicians and examine the two projects in the search for the driving forces for transport policies. Despite all the differences, some similarities in the development of their urban transport projects have been found. The paper inquires into the planning and operationalisation of transport modernisation and the politics of sustainable transport.