India will need $4.5 trillion for infrastructure by 2040, Global Infrastructure Hub report
The Dollar Business Bureau
The Global Infrastructure Hub, a G20 initiative, released a report titled, ‘Global Infrastructure Outlook’ in which it says, India will need investments of around $2.5 trillion by 2040 in order to develop the infrastructure needed to improve the country’s economic growth and wellbeing of the community.
The infrastructure investment need of $4.5 trillion will make India the second largest infrastructure market after China.
Detailing that rising income levels and economic prosperity is likely to drive significant demand for infrastructure investment in India for the next 25 years, the report said.
If the sustainable development goals are to be accounted, the country is predicted to need an additional $888 billion by 2030 to provide basic infrastructural needs like electricity and water. "In absolute terms, the total investment needed to meet the SDGs is greatest in India – a total of USD 1.3 trillion of investment is needed by 2030, more than China, which is USD 257 billion," the report said.
After an intensive study of 50 countries and 7 industry sectors, the firm obtained that by 2040, the global population is likely to increase by 25% touching almost 2 billion. Migration from rural to urban areas will grow by 46% triggering a massive need for infrastructure the report specified.
The cost of providing infrastructure to support the global economic growth and to close the infrastructure gaps is forecast by the report to reach $94 trillion by 2040, with a further $3.5 trillion needed to meet the UN Sustainable Development Growth goals of access to drinking water and electricity by 2030 bringing the total to $97 trillion.