BUILDING A BETTER TOMORROW

India's exponential economic growth paves the way for integrated infrastructure development

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India is poised to become one of the world’s largest economies by 2047, with a projected GDP of $35 trillion to $40 trillion, according to estimates by the Confederation of Indian Industry (CII). This tremendous growth is fuelled by a significant increase in GDP, which has more than doubled since 2010, reaching approximately $3.5 trillion in 2022.

The country’s industrial output has also surged by 56% during the same period, contributing to the accelerating pace of urbanization expected by 2047. Such exponential economic expansion calls for robust infrastructure development to meet the growing demands and support the nation’s progress. With the election year fast approaching, the government is investing heavily in infrastructure development.

According to a recent World Bank report titled “Financing India’s Urban Infrastructure Needs: Constraints to Commercial Financing and Prospects for Policy Action,” it is estimated that India must invest $840 billion in urban infrastructure over the next 15 years. This amounts to an average annual investment of $55 billion. The report highlights the pressing need to attract more private and commercial investments to bridge the emerging financial gaps.

By 2036, India is expected to have a population of 600 million living in urban areas, accounting for 40% of the total population. This rapid urbanization will exert additional strain on the already overburdened urban infrastructure and services, including the demand for clean drinking water, reliable power supply, and efficient and safe road transport, among others. Currently, the central and state governments finance more than 75% of urban infrastructure, while urban local bodies contribute 15% through their own revenues.