Brickwork Ratings: India cities drive 70% GDP growth, 80L/cr needed
Big news for India's cities: a new Brickwork Ratings report says urban areas will drive 70% of the country's GDP growth by 2036.
This urban boom is expected to need about ₹80 trillion in infrastructure investments by 2037, thanks to more funding and smarter city financing.
UCF mandates half funding upfront
The Urban Challenge Fund (UCF) is changing how cities get money for big projects.
Now, they'll need to raise at least one-half of the costs through bonds, loans, or public-private partnerships before getting government grants.
Right now, just 5% of funding requirements come through debt markets, so this move could open up fresh ways for smaller cities to fund their growth.
City governance, audits and tax collection
The report also points out that better governance, regular financial audits, and improved property tax collection are crucial if cities want higher credit ratings and more investment.
Around 4,223 smaller urban bodies and cities are being targeted under the UCF framework, and nearly 80% of them are yet to access market debt, so there's a lot of potential if these changes take off.