A new World Bank report emphasizes the immense economic potential of Indian cities, projecting that by 2030, 70 percent of new jobs will originate from urban areas. However, it warns that immediate action is necessary to address the impacts of extreme weather events, which could otherwise lead to billions in future economic losses.
Titled Towards Resilient and Prosperous Cities in India, the report was developed in collaboration with the Ministry of Housing and Urban Affairs. It projects that India’s urban population will nearly double to 951 million by 2050, requiring over 144 million new homes by 2070. Rising temperatures caused by heat waves and urban heat island effects, combined with rapid construction reducing the capacity to absorb stormwater, are increasing the vulnerability of cities to heat and flooding.
The study, covering 24 Indian cities and focusing in detail on Chennai, Indore, New Delhi, Lucknow, Surat, and Thiruvananthapuram, finds that proactive adaptation could significantly reduce future weather-related economic and human losses. For instance, flood-related losses could be reduced by $5 billion annually by 2030 and $30 billion by 2070. Heat adaptation measures could save over 130,000 lives by 2050.
With over half of the urban infrastructure for 2050 yet to be built, the report identifies this as a key moment for India to invest in resilient urban development. Recommended actions include enhanced stormwater regulation, expansion of green spaces, adoption of cool roofs, and improved early warning systems. Additionally, investments in energy-efficient housing, flood-resilient transport, and modern waste management systems are deemed essential.
Improving access to urban finance is also highlighted, with the report estimating that over $2.4 trillion in investments will be required by 2050. It stresses the importance of private sector engagement to meet these needs. The report notes existing city-level efforts: Ahmedabad’s Heat Action Plan, Kolkata’s flood forecasting system, Indore’s waste management improvements, and Chennai’s climate action strategy.
The report is supported by the Global Facility for Disaster Reduction and Recovery (GFDRR), a multi-donor trust fund aimed at reducing disaster risk and enhancing resilience worldwide.
