Indian Cities Need To Invest $840 Billion In Infrastructure: World Bank Report As per the report, only 5 per cent of the infrastructure needs of Indian cities are currently being financed through private sources

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

A new World Bank report, on Monday, said that India needs to invest $840 billion over the next 15 years, or on an average of $55 billion per annum, into the urban infrastructure from an average of $10.6 billion a year in the past decade to an average of $55 billion a year for the next 15 years.

The report, titled 'Financing India's Infrastructure Needs: Constraints to Commercial Financing and Prospects for Policy Action', estimated that India would need $840 billion over the next 15 years.

"By 2036, 600 million people will be living in urban cities in India, representing 40 per cent of the population. This is likely to put additional pressure on the already stretched urban infrastructure and services of Indian cities, with more demand for clean drinking water, reliable power supply, efficient and safe road transport amongst others," said the World Bank in a statement.

"Currently, the central and state governments finance over 75 per cent of city infrastructure, while urban local bodies (ULB) finance 15 per cent through their own surplus revenues," the statement added.

As per the report, only 5 per cent of the infrastructure needs of Indian cities are currently being financed through private sources. With the government's current (2018) annual urban infrastructure investments topping at $16 billion, much of the gap will require private financing.

"Cities in India need large amounts of financing to promote green, smart, inclusive, and sustainable urbanization. Creating a conducive environment for ULBs, especially large and creditworthy ones, to borrow more from private sources will therefore be critical to ensuring that cities are able to improve living standards of their growing populations in a sustainable manner," said Auguste Tano Kouamé, country director, World Bank, India, in a statement.

The report recommended expanding the capacities of city agencies to deliver infrastructure projects at scale. Currently, the 10 largest ULBs were able to spend only two-thirds of their total capital budget over three recent fiscal years.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

Related Topics

Business Models

A Company With a Conscience — How to Make High-Priced Products Accessible to Working-Class Families

Some products are inherently expensive. Companies can offer leasing programs, financing options and other marketing approaches to make them accessible to working families.

Leadership

If You Want People to Follow You, Stop Being a Boss — 8 Steps to Truly Effective Leadership

Understand the key differences and embark on the journey from boss to leader with these eight vital steps. This article unveils how to inspire and lead teams with passion and purpose.

Innovation

Deepfakes Are Lurking in 2024. Here's How to Navigate the Ever-growing AI Threat Landscape

Can you tell reality from AI? Discover the evolving threat landscape and the global battle against hyper-realistic deception.

Growing a Business

How to Get Your Business Noticed (and How to Brag About It)

Knowing how to go after important recognition awards and then leverage them can have a long-term impact on your business.

Money & Finance

5 Ways to Build a Business Budget for Maximum Success

Whether you're launching a startup or planning for growth, having a smart budgeting process is essential.