This chapter attempts to address some of the financing concerns around urban infrastructure in India. It discusses why private capital is unlikely to meet the requirements of this sector and suggests that the government—central, state, and local—must play a larger role. It then seeks to expand the conversation around infrastructure financing, arguing that a proactive approach to dealing with urbanisation is critical to keep future infrastructure requirements in check. India’s urbanisation represents a fundamental spatial and economic restructuring of where people live and work. To plan and finance infrastructure, policymakers require a deeper understanding of the contours of urbanisation. A strong but flexible planning regime that anticipates urban growth can help leverage additional sources of financing and address long-term environmental sustainability concerns.

Download the paper here.

Note: This work was done by the author/s when they were a part of the IDFC Institute and is republished here with permission.