India must pump $55 bn a year into urban infrastructure: WB

India will have to invest $840 billion over the next 15 years, or an average of $55 billion per annum, in urban infrastructure to meet the needs of its fast-growing urban populations, according to a World Bank report. The report, ‘Financing India’s Infrastructure Needs: Constraints to Commercial Financing and Prospects for Policy Action’, also emphasises on the need for the country to leverage more private and commercial investments in order to meet the emerging financial gaps. By 2036, 40% of the country’s population will be living in urban areas. This will put further pressure on an already stretched infrastructure in terms of drinking water, power supply, and road transport, among others. Currently, only 5 per cent of the infrastructure needs of Indian cities are being financed through private sources. 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 revenues. “Cities in India need large amounts of financing to promote green, smart, inclusive, and sustainable urbanisation. 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, Auguste Tano Kouamé, Country Director, World Bank, India, said in a press statement. See also: India to drive a 5th of global growth: Morgan StanleyPM Modi to launch projects worth over Rs 95 billion in Telangana