Geneva

India needs a “stable policy framework” to bring in private investments for developing urban infrastructure which faces a fund shortage of USD 110 billion, says a report released today.

The World Economic Forum (WEF) report said India needs more than USD 640 billion investments between 2012 and 2031 to deliver basic infrastructure for the country’s growing urban population.

With 410 million city dwellers, India has the world’s second largest urban population, it noted.

Suggesting various measures to boost urban infrastructure development, WEF said the government should look at having a “stable policy framework” to ensure inclusive urban growth.

There is an estimated “USD 110 billion funding gap that could hinder India’s ability to provide basic urban infrastructure and services to its rapidly growing urban population,” the report said.

According to WEF, there is a need to create a stable policy framework for private investment in urban infrastructure.

“Once the right conditions for investors have been created, the Government of India needs to look at the various tools available such as public-private partnerships to enable investments in strategic infrastructure and urban development,” it added.

Other suggestions include integrating spatial planning at all governmental levels and creating institutions to stimulate capacity building and attract talent to grow businesses.

“The primary goal of spatial planning is to integrate housing, strategic infrastructure and urban infrastructure, and improve national and local governance in the context of urban development,” the report said.

The report titled ‘The Future of Urban Development and Services Initiative: Urban Development Recommendations for the Government of India’ has been prepared by WEF in collaboration with consultancy firm Accenture.

Alice Charles, Head of Urban Development at WEF said that in the coming decades, the pace of urbanisation in the developing world would continue to far exceed that of the developed world.

“This will be exemplified by India, where the country’s urban population is forecast to almost double to 814 million between 2014 and 2050,” Charles noted.

Indian government has sought to foster urban development by introducing legislation such as the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, the report said.

Besides, various other initiatives such as creation of five industrial corridors and launch of ‘Make in India’ and the 100 Smart Cities programmes, have been started, it added.

Jaitley leaves for US to attend IMF-WB meet

New Delhi

Finance Minister of India, Arun Jaitley is leaving for the US on Tuesday night to attend the IMF-World Bank Spring meetings in Washington.

Reserve Bank of India (RBI) Governor Raghuram Rajan and other senior officials of the Finance Ministry and the Reserve Bank will participate in the meeting that is likely to focus on the steps needed to give a push to the global economy.

Jaitley, sources said, will leave for the US on the night of April 14, and will be back on April 20. The three-day Spring Meetings will begin from April 17.

India is likely to figure prominently at the meeting.

International Monetary Fund (IMF) Managing Director Christine Lagarde had described the country as a ‘growth bright spot’ during her visit here last month.

“Forecasts for most emerging and developing economies are slightly worse than last year…(but) India is a growth bright spot,” she had said.

China is slowing, Brazil is stagnating, many parts of the Middle East are beset with political and economic turmoil and Russia is experiencing economic difficulties, she added.

India is expected to emerge as the fastest growing economy overtaking China in the current financial year, as per projection by the Asian Development Bank (ADB).

It has projected that India will grow by 7.8 per cent in the current fiscal and 8.2 per cent in 2016-17.

India is also likely to press for speeding up of IMF quota reforms to give more say to emerging economies in the multilateral body.

Emerging counties, like India, China, Brazil and Russia have been asking for increased voting rights in IMF, which would reflect their growing share in world economy.

The quota reform, once implemented, will increase India’s voting share from the current 2.44 per cent to 2.75 per cent, following which the country will become the eighth largest quota holder at the IMF, up from the 11th position.

PTI