India will need $4.5 trillion by 2040 for infrastructure: report
Mumbai: India will need investments to the tune of around $4.5 trillion till 2040 to develop infrastructure to improve economic growth and community well-being, said Global Infrastructure Hub on Tuesday.
According to its report ‘Global Infrastructure Outlook’, India has an infrastructure investment need of $4.5 trillion by 2040, making it the second largest infrastructure market in Asia after China.
“Rising income levels and economic prosperity is likely to drive significant demand for infrastructure investment in India over the next 25 years,” the report said.
Taking sustainable development goals (SDGs) into account, the country is predicted to need an additional $888 billion by 2030 to provide universal household access to electricity and water.
“In absolute terms, the total investment needed to meet the SDGs is greatest in India – a total of $1.3 trillion of investment is needed by 2030, more than China, which is $257 billion,” the report said.
The firm, which conducted an intensive study of 50 countries and seven industry sectors, found out that by 2040, the global population will grow by almost 2 billion people – a 25% increase.
Rural to urban migration continues with the urban population growing by 46%, triggering massive demand for infrastructure support, it said. The cost of providing infrastructure to support global economic growth and to start to close infrastructure gaps is forecast to reach $94 trillion by 2040, with a further $3.5 trillion needed to meet the UN SDGs (sustainable development goals) for universal household, access to drinking water and electricity by 2030, bringing the total to $97 trillion, the report added.