Indian Cities Require $2.4 Trillion by 2050: Report

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NEW DELHI: A report by FICCI and EY estimates that Indian cities will need approximately $2.4 trillion by 2050 to achieve climate resilience and low-carbon status.

So far, only 20 municipal corporations have tapped into the capital markets, collectively raising around $476 million.

While urban areas account for over 60% of India’s GDP from about one-third of the population, municipal corporations generate revenues equivalent to merely 0.6% of the GDP, according to the report.

India’s urban infrastructure needs are projected at about $840 billion over the next 15 years, equating to nearly $55 billion each year.

The report highlights that nearly 70% of the urban infrastructure required by 2047 has yet to be constructed.

By 2036, urban India is expected to accommodate around 600 million people, contributing nearly 70% of the GDP. By 2050, the urban population is projected to increase to 877 million, potentially making up about 75% of the GDP.

The Union Cabinet’s ₹1,00,000 crore Urban Challenge Fund mandates urban local bodies to secure half of every project’s cost from capital markets, aiming to generate close to ₹4 lakh crore in investments.

This fund represents a significant shift towards making Indian cities financially viable, capable of attracting both private and institutional investments.

According to the report, the top 10 cities in India contribute nearly 30% of the national GDP. Meanwhile, 36 mid-to-large cities and around 450 smaller centers remain underutilized despite housing a larger portion of the urban populace.

It advocates for a polycentric urban framework connected by economic corridors and PM Gati Shakti, designating tier-II and tier-III cities as regional hubs for growth.

Additionally, over 8,000 projects valued at more than ₹1.64 lakh crore have been initiated under the Smart Cities Mission. Approximately ₹2.7 lakh crore has been committed through AMRUT across nearly 500 cities, with 1.25 crore houses approved under PMAY-Urban.

  • Published On Jul 28, 2026 at 04:59 PM IST

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