Current Socio-Economic Problems
India’s urban infrastructure financing, needs and reality
Urban Population and Financing Needs
▪ India’s urban population is expected to double from 400 million to 800 million over the next three decades.
▪ India needs approximately ₹70 lakh crore by 2036 to meet urban infrastructure needs.
▪ Current annual investment in urban infrastructure is around ₹1.3 lakh crore, only a quarter of the required ₹4.6 lakh crore.
Municipal Finances and Challenges
▪ Municipal finances have remained stagnant at 1% of GDP since 2002.
▪ Municipal bodies contribute 45% of urban investments; the rest is managed by parastatal agencies.
▪ Municipalities’ own revenue sources declined from 51% to 43%.
Public-Private Partnerships and Future Steps
▪ PPP investments in urban infrastructure have dropped significantly over the past decade.
▪ Strengthening State finance commissions and empowering municipal governments is crucial.
▪ Developing a pipeline of 600-800 projects to meet investment needs.
Collaboration and Sustainable Development
▪ Addressing financial and structural challenges requires collaboration across government levels and private sector participation.
▪ Emphasizing innovation and efficient governance to meet the demands of growing cities.
