Indian cities need $2.4 trillion in investments by 2050 for low-carbon infra and services: World Bank

India needs investments of over $2.4 trillion by 2050 to create new, resilient, and low-carbon infrastructure and services in cities, a new World Bank report estimates.

With India’s urban population expected to almost double by 2050 to 951 million, more than 144 million new homes will be needed by 2070, it says.

The report titled “Towards Resilient and Prosperous Cities in India,” prepared in close collaboration with the Ministry of Housing and Urban Affairs, says Indian cities hold tremendous potential as centres of economic growth, with 70 percent of new jobs coming from cities by 2030. However, timely action is needed for cities to deal with impacts from extreme weather events and avert billions of dollars in future losses.

The report notes that intense heat waves and urban heat island effects are already causing temperatures in city centres to rise by over 3-4 degrees over surrounding areas, and the rapid growth of built-up areas is reducing cities’ capacity to absorb storm water, making them more vulnerable to floods.

 The report, which studied 24 Indian cities, with a special focus on Chennai, Indore, New Delhi, Lucknow, Surat, and Thiruvananthapuram, states that timely adaptation can avert billions of dollars of annual losses from future weather-related shocks. If annual pluvial flood-related losses can be averted, it can amount to $5 billion by 2030 and $30 billion by 2070, the report estimates. Investments in adaptation will also save over 130,000 lives from extreme heat impacts by 2050, it predicted. 

With over 50 percent of the urban infrastructure required for 2050 still to be built, India has a critical opportunity to drive resilient urban infrastructure development, the report said.

 “The imperative for India to build resilient cities at scale is clear. By investing in more green and resilient urban development—including housing, transport, and municipal services—cities can better mitigate extreme heat conditions and urban floods and continue to grow and create jobs,” said Auguste Tano Kouame, World Bank Country Director.

 The report called for implementation of programs to address extreme urban heat and flooding, including better regulation of stormwater, green spaces, installation of cool roofs, and effective early warning systems. It has proposed investment in resilient infrastructure and municipal services, energy-efficient and resilient housing, and modernisation ofsolid waste management and urban transport to make them flood resilient.

“Many Indian cities are showing the way to improve adaptation measures, benefit from good practices, and fast-track actions towards resilient urban growth,” said Asmita Tiwari and Natsuko Kikutake, co-authors of the report. “Timely interventions will help India’s cities continue to safeguard lives and properties, attract new businesses and jobs, and drive innovation.”