India needs ₹80L/cr urban investment by 2037 as cities grow
India's cities are growing fast, and a new report says the country will need to invest ₹80 lakh crore in urban infrastructure by 2037 to keep up.
Urban areas could be powering nearly 70% of India's GDP by 2036, so finding smart ways to fund better roads, housing, and services is a big deal.
Government backs ₹1L/cr Urban Challenge Fund
To help cities raise money, the government-backed ₹1 lakh crore Urban Challenge Fund: think of it as a push for cities to use market-based financing instead of just government grants.
If local bodies can cover one-half their project costs through things like municipal bonds or public-private partnerships, they unlock central funds too.
Municipal bonds are slowly catching on (with only 17 cities using them since FY18), but investor confidence is rising.
Plus, smaller towns may get extra support through a special credit guarantee scheme designed to boost their access to funding.