Financing urban infrastructure
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The adoption of the bare necessities index signals making policy more evidence-based; however, there is scope to make the approach more forward-looking.

India’s rapid urbanisation is a well-documented story. Depending on how one counts urbanisation, Indian has between a-third and-a-half of its population already living in high-density areas. The trend towards urbanisation will continue as the economy moves towards becoming more connected with global ecosystems in manufacturing and services. According to various estimates, urban India contributes to ~70% of India’s GDP. The poor quality of India’s urban infrastructure means that the need to invest in it is well recognised.

Indian cities will have to improve their rankings in the surveys of the best cities in the world. Current rankings are largely driven by poor infrastructure of travel, water and sanitation, and air quality. The High-Powered Expert Committee for Estimating the Investment Requirements for Urban Infrastructure Services estimated the investment required to finance urban infrastructure and services at Rs 39.2 trillion during 2011-2031.

+INFO: Financial Express

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