Financing India’s Urban Infrastructure Needs: Constraints to Commercial Financing and Prospects for Policy Action

Publication:
Financing India’s Urban Infrastructure Needs: Constraints to Commercial Financing and Prospects for Policy Action

dc.contributor.author	Athar, Sohaib
dc.contributor.author	White, Roland
dc.contributor.author	Goyal, Harsh
dc.date.accessioned	2022-11-14T14:58:35Z
dc.date.available	2022-11-14T14:58:35Z
dc.date.issued	2022
dc.description.abstract	India is rapidly urbanizing, with about 600 million people expected to be living in cities by 2036. This will put additional pressure on the already stretched urban infrastructure and services in these cities. This report estimates that India will need $840 billion in investment into urban infrastructure over the next 15 years—or $55 billion per year on average—if it is to effectively meet the needs of this fast-growing population. Despite a recent increase in public sector financing, there is still a large shortfall of resources relative to these needs. Financing from private and commercial sources, such as through municipal debt and public-private partnerships, can play a substantial role in addressing this shortfall. However, the use of such financing is very limited at present even in financially strong cities. This report analyses the demand- and supply-side constraints to raising private financing for urban infrastructure and provides policy actions to address them. It first presents latest estimates of future infrastructure investment needs for Indian cities and reviews recent trends in municipal finance and private commercial financing to meet these needs, focusing on municipal debt (such as loans and municipal bonds) and public-private partnerships. It then assesses the key constraints that undermine the mobilization of private finance for urban infrastructure. Finally, it provides proposals for policy action on how these constraints can be addressed at the demand and supply sides and shows how the Government of India can play an important role in removing various market frictions faced by cities. It proposes sequenced measures that can be taken at the city, state, and federal levels to create an environment in which private commercial finance becomes a much bigger part of the solution to India’s urban investment challenge.	en
dc.identifier	http://documents.worldbank.org/curated/en/099615110042225105/P17130200d91fc0da0ac610a1e3e1a664d4
dc.identifier.doi	10.1596/38306
dc.identifier.uri	https://hdl.handle.net/10986/38306
dc.language	English
dc.language.iso	en_US
dc.publisher	Washington, DC: World Bank
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo
dc.title	Financing India’s Urban Infrastructure Needs	en
dc.title.subtitle	Constraints to Commercial Financing and Prospects for Policy Action	en
dc.type	Report	en
dc.type	Rapport	fr
dc.type	Informe	es
dspace.entity.type	Publication
okr.crossref.title	Financing India’s Urban Infrastructure Needs
okr.date.disclosure	2022-11-14
okr.date.doiregistration	2025-05-07T09:30:44.502344Z
okr.date.lastmodified	2022-10-04T00:00:00Z	en
okr.docurl	http://documents.worldbank.org/curated/en/099615110042225105/P17130200d91fc0da0ac610a1e3e1a664d4
okr.guid	099615110042225105
okr.identifier.externaldocumentum	P171302-0d91fcf5-fcc4-4cda-ac61-a1e3e1a664d4
okr.identifier.internaldocumentum	33912179
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/099615110042225105/pdf/P17130200d91fc0da0ac610a1e3e1a664d4.pdf	en
okr.region.administrative	South Asia
okr.region.country	India
okr.unit	Urban SAR 1 (SSAU1)