Urban congestion poses significant economic, social, and environmental challenges, from wasted fuel and time losses to deteriorating air quality. Congestion pricing has emerged as a policy tool to address these negative externalities by charging vehicles for road use in high-demand areas. This paper examines the economic implications of congestion pricing through both theoretical foundations and case studies from London, Stockholm, and Singapore, while also considering its potential in India. Findings show that congestion pricing reduces traffic volumes, increases travel speeds, and generates substantial revenues that can be reinvested into public transportation and sustainable infrastructure. However, its effectiveness depends heavily on equitable policy design, with exemptions, subsidies, and transparent reinvestment strategies playing a key role in public acceptance. The analysis concludes that while congestion pricing is not a standalone solution, it can serve as a cornerstone of sustainable urban mobility when integrated with broader strategies for equity, technological innovation, and inclusive growth.