As per `Global Infrastructure Outlook’ released by Global Infrastructure Hub (GIH), India will need investments to the tune of around USD 4.5 trillion till 2040 to develop infrastructure to improve economic growth and community wellbeing. The report is based on an intensive study of 50 countries and seven industry sectors.
India specific Highlights of ‘Global Infrastructure Outlook’ Report:
As per the report, rising income levels and economic prosperity is likely to drive significant demand for infrastructure investment in India over the next 25 years.
- Taking sustainable development goals (SDGs) into account, it is predicted that India will need additional USD 888 billion by 2030 to provide universal household access to 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 highlighted that on account of rural to urban migration in India urban population is growing by 46%, triggering massive demand for infrastructure support.
Infrastructure Spending in Global Context:
To support global economic growth and to bridge infrastructure gaps, it is forecasted that cost of US$94 trillion has to be incurred by 2040, with a further USD 3.5 trillion needed to meet the UN SDGs (sustainable development goals) for universal household, access to drinking water and electricity by 2030, bringing the total to USD 97 trillion.
- The reports has expressed concerns that nearly a fifth of the $94 trillion in global infrastructure investment needed by 2040 risks being unfunded if current spending trends continue.
- To close the spending gap, annual infrastructure spending needs to rise to 3.5% from 3% of global gross domestic product.
About Global Infrastructure Hub (GIH):
Global infrastructure Hub is a G20 initiative started with the goal of increasing the flow and quality of private and public infrastructure, by facilitating knowledge sharing, highlighting reforms and connecting public and private sectors globally.
- GIH was set up in 2014. It is funded by governments including Britain, Australia, China, Korea and Singapore.
- Chris Heathcoteis the current Chief Executive of GIH.
- Global Infrastructure Outlook report details how much each country needs to spend on infrastructure up to 2040, which sectors need it the most and how far they are from meeting these needs based on current spending trends.