India’s cities will need an estimated USD 2.4 trillion in investment by 2050 to support climate-resilient and low-carbon development, according to a joint report. The assessment highlights the scale of funding required as urban areas face rising pressure to expand infrastructure while also adapting to climate risks.
The report says municipal corporations have so far raised only a small share of the capital needed. That points to a major gap between the ambitions for cleaner, more resilient cities and the financial capacity of local urban bodies responsible for delivering many of the projects.
The findings underline a wider challenge in India’s urban finance system. As cities grow, they will need large and sustained investment in core services and infrastructure, but local governments may struggle to mobilise funds at the level required without stronger financing mechanisms.
The report adds to the policy debate over how India can fund the transition of its cities over the next few decades. With the investment requirement running into trillions of dollars, the focus is likely to remain on boosting municipal finance and finding ways to unlock more capital for urban development.
