India is urbanising rapidly. By 2036, its towns and cities will be home to 600 million people, or 40 % of the population, up from 31 % in 2011, with urban areas contributing almost 70 % to GDP. How well India manages this urban transformation will play a critical role in realizing its ambition of becoming a developed country by 2047, the 100th year of Independence.
Indeed, building the necessary infrastructure will be key for creating livable, climate-resilient, and inclusive cities that drive the economy forward. Since nearly 70 % of the urban infrastructure needed by 2047 is yet to be built, sizeable investments will be required. By 2036, India will need to invest $840 billion in infrastructure – an average of $55 billion or 1.2 % of GDP per annum. However, estimates suggest that between 2011 and 2018, the country’s total capital expenditure on urban infrastructure averaged only 0.6 % of GDP, half the required quantum of investment.
