India has a critical opportunity to build resilient cities, says World Bank Report

THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 22, 2025

As India’s cities rapidly expand to accommodate growing populations and economic ambitions, a new World Bank report underscores an urgent need for resilient urban development to avert billions in future losses from extreme weather. Titled “Towards Resilient and Prosperous Cities in India”, the report highlights that by 2030, 70 percent of new jobs will originate in cities, positioning urban centers as key engines of economic growth. However, this potential is at risk unless cities are better equipped to handle climate-related challenges.

Prepared in close partnership with the Ministry of Housing and Urban Affairs, the report paints a detailed picture of India’s urban transformation. With the urban population projected to almost double to 951 million by 2050, more than 144 million new homes will be required by 2070. At the same time, cities are becoming increasingly vulnerable. Heatwaves are intensifying, with urban heat island effects pushing city center temperatures 3–4°C higher than surrounding areas. Expanding built-up zones are also choking natural drainage systems, exacerbating the risk of floods.

Based on studies of 24 Indian cities—including Chennai, Indore, New Delhi, Lucknow, Surat, and Thiruvananthapuram—the report finds that timely and strategic adaptation measures can prevent staggering losses. Without intervention, annual flood-related damages could reach $5 billion by 2030 and $30 billion by 2070. Moreover, effective adaptation can help save over 130,000 lives from extreme heat impacts by 2050. These findings underscore that India still has time to act: over half the urban infrastructure needed by 2050 is yet to be built, offering a window of opportunity to invest in resilient, green, and inclusive urban infrastructure.

“The imperative for India to build resilient cities at scale is clear. By investing in more green and resilient urban development—including housing, transport, and municipal services—cities can better mitigate extreme heat conditions and urban floods, and continue to grow and create jobs,” said Auguste Tano Kouame, World Bank Country Director for India.

To meet the demands of this transformation, the report estimates that India will require over $2.4 trillion in investment by 2050 to create infrastructure that is not only resilient but also aligned with low-carbon goals. The participation of the private sector will be essential to bridge this financial gap, with targeted policies to enhance access to urban finance and incentivize sustainable development.

Highlighting successful case studies, the report notes how cities are already pioneering change. Ahmedabad has introduced a comprehensive Heat Action Plan to improve early warnings, healthcare response, and labor protections. Kolkata has implemented a city-level flood forecasting and warning system. Indore has modernized its solid waste management system, while Chennai has adopted a climate action plan grounded in robust risk assessments.

“Many Indian cities are showing the way to improve adaptation measures, benefit from good practices, and fast-track actions toward resilient urban growth,” said Asmita Tiwari and Natsuko Kikutake, co-authors of the report. “Timely interventions will help India’s cities continue to safeguard lives and properties, attract new businesses and jobs, and drive innovation.”

As India aims to become an economic superpower, the need for resilient and sustainable urban planning is more urgent than ever. This World Bank report serves as a timely call to action for policymakers, urban planners, and private stakeholders to collaborate and ensure that India’s urban future is both prosperous and prepared.