The World Bank on Tuesday announced that India must invest over $2.4 trillion by 2050 to develop urban infrastructure that is resilient to climate change.
This is due to the increasing challenges faced by India’s rapidly expanding cities from extreme weather events, which are linked to climate change.
India is on the cusp of a massive urban transformation, with its city-dwelling population expected to almost double, surging from 480 million in 2020 to a staggering 951 million by mid-century.
This rapid urbanisation presents both immense opportunities and significant challenges.
Challenges
However, the recent World Bank report highlighted a critical concern: the growing vulnerability of India’s urban centers to the intensifying impacts of climate change.
The report underscores how erratic rainfall patterns, prolonged and severe heatwaves, and rising sea levels are increasingly jeopardising the liveability and sustainability of urban areas across the nation.
These climatic shifts manifest in various forms, from devastating floods that cripple infrastructure and displace communities to intense heat stress that poses serious health risks, particularly for vulnerable populations.
Coastal cities, in particular, face the dual threat of sea-level rise exacerbating storm surges and leading to increased saline intrusion into freshwater sources.
This confluence of rapid urban growth and escalating climate risks demands urgent and comprehensive strategies.
As more Indians migrate to cities in search of economic opportunities and better livelihoods, the pressure on existing urban infrastructure and resources will intensify.
The World Bank’s findings serve as a critical reminder that India’s urban future is inextricably linked to its ability to build resilient and climate-adaptive cities.
India faces increasing costs from weather-related damage without significant investments in housing, transport, water, and waste management systems, according to the report titled “Towards Resilient and Prosperous Cities in India.”
“Cities need to become more resilient if people living in those cities are going to be safe,” Auguste Tano Kouame, the World Bank’s country director for India, said at the launch of the report, which was prepared in collaboration with India’s urban development ministry.
Projections
India currently faces an estimated annual loss of $4 billion due to urban flooding, a figure projected to increase to $5 billion by 2030 and potentially reach $30 billion by 2070 if no corrective measures are taken.
India’s urban population growth will necessitate significant investment in the coming decades. Conservative estimates suggest the country will require $2.4 trillion by 2050 and $10.9 trillion by 2070.
These projections rise to $2.8 trillion and $13.4 trillion for the same periods if India experiences moderate urbanisation.
The report said:
Timely actions can avert billions of annual damages and losses in flooding and extreme heat while investing in resilient and efficient municipal infrastructure and services.
According to a World Bank report, India allocates approximately 0.7% of its GDP to urban infrastructure, which is considerably lower than international standards.
The report emphasises the need for India to substantially increase both public and private investment in this sector.
Coordination is essential among federal, state, and municipal governments to enhance project financing and facilitate climate-linked fiscal transfers.
Additionally, India needs to expand its collaborations with the private sector, particularly in areas such as energy-efficient water supply, sanitation, solid waste management, and green building initiatives.
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