In Short : India may need up to $13.4 trillion by 2070 to build climate-resilient urban infrastructure, according to a World Bank report. With rapid urbanization and rising climate risks, investments are required in housing, transport, water, and waste systems. The report urges increased private financing and coordinated government action to avoid escalating losses from heatwaves, floods, and sea-level rise.
In Detail : India could require as much as $13.4 trillion by 2070 to develop urban infrastructure resilient to climate change, according to a new report by the World Bank. This projection is based on a moderate urban growth scenario, with significant investment needed to manage the rising risks facing cities.
The country’s urban population is expected to nearly double, from 480 million in 2020 to over 951 million by 2050, and further to 1.1 billion by 2070. As cities grow, they will face intensified threats from extreme heat, urban flooding, and sea-level rise—requiring large-scale planning and resilience-building efforts.
Current urban infrastructure investment stands at just 0.7% of GDP, far below the level needed to support future resilience. Additionally, private sector participation in urban climate finance remains limited, contributing only about 5%—significantly less than in many other countries.
Without adequate investment, the economic costs of climate impacts could be severe. Urban flood-related losses, currently around $4 billion annually, could increase to $30 billion by 2070 if no action is taken. The report highlights that preventive infrastructure can reduce both economic losses and human vulnerability.
To meet future demand, India will need to invest in climate-smart infrastructure across housing, water supply, sanitation, public transport, and solid waste systems. A baseline of $2.4 trillion is needed by 2050, rising to $10.9 trillion by 2070. Under higher growth assumptions, this requirement increases to $2.8 trillion and $13.4 trillion respectively.
The World Bank emphasizes that timely and coordinated efforts between national, state, and local governments are crucial. It also recommends scaling up private capital mobilization through mechanisms such as green bonds, blended finance, and carbon market initiatives.
Investments in climate adaptation—like urban cooling strategies, flood defenses, resilient housing, and early warning systems—can not only reduce disaster losses but also create jobs and improve living standards. Such measures represent a win-win for sustainable urban development.
The report concludes that India has a narrow but vital window to act. Delays in investing in resilient infrastructure could result in significantly higher costs later, both economically and socially. Proactive planning today is essential to secure a livable urban future for the next generation.
