Global Infrastructure Hub along with Oxford Economics forecasts that India has an infrastructure investment need of $4.5 trillion by 2040, making it the second-largest infrastructure market in Asia after China.
The Global Infrastructure Outlook report, released on Tuesday, states, “It is important to note that over half of the forecast infrastructure spending need to 2040 is contributed by just four countries: China, the US, India and Japan.”
A total of 50 countries and seven sectors – energy, telecommunications, ports, water, airports, rail and road were covered for analysis.
The report reveals the cost of providing infrastructure to support global economic growth and for closing the infrastructure gaps is forecast to reach $94 trillion by 2040, with a further $3.5 trillion needed to meet the United Nations Sustainable Development Goals (SGD) for universal household access to drinking water and electricity by 2030, bringing the total to $97 trillion.
In absolute terms, the funds required to meet SDG for electricity is greatest for India, with $1 trillion investment needed by 2030 to provide universal access to electricity. This is more than one-third of the total need identified for the 23 countries in the report’s sample.
“At a global level, we estimate that meeting the electricity sustainable development goal would add $2.7 trillion of investment to our investment need scenario between 2016 and 2030. 48% of the additional requirement relates to Africa, and 43% to Asia. India contributes almost three-fifths of the additional requirement for Asia,” read the report.
India’s gross domestic product per head currently stands at $1,600 and is forecast to rise to $4,800 by 2040, which is still some way below China’s $8,000, states the report. “As India develops, we estimate the country will need to invest $3.9 trillion under current trends, increasing to $4.5 trillion under the investment need scenario,” the report added about India.