By 2047, India quickly shifts to a high-income, developed economy with per capita income of $26,000 and GDP of $35 trillion, and the infrastructure deficit and urban rural divide remain challenging. While overcoming these problems, it is crucial to consider the accompanying environmental problems.
As we build roads, bridges, cities and power foundations to support a rapidly growing economy, we must also ask ourselves, are we building resilience in a world full of risks? The answer lies in our commitment to sustainable infrastructure through a way that not only meets current needs but also protects the future.
Sustainable infrastructure is more than just an engineering concept. This is a better vision for India. This means embed sustainability into the DNA of development by designing and executing projects in a way that saves natural resources, reduces emissions and improves the quality of life of people in various regions and income levels. Carbon dioxide has a long shelf life in the atmosphere, so in the next few decades, the impact of many climate change has been determined by historical emissions. So, regardless of the trajectory of future greenhouse gas emissions, we must prepare for climate change.
However, the transition to greener infrastructure is often limited by financial barriers, as sustainable projects require higher upfront investments than traditional investments. Long-term pregnancy and substantial capital need to block traditional lenders, thus widening the infrastructure financing gap. Recognizing this challenge, the World Bank Group helps develop China to build smart, inclusive and sustainable infrastructure through low-interest loans, grants, consulting services and mechanisms to attract private sector participation. In India, the establishment of the National Bank for Financing Infrastructure and Development (NABFID) in 2021 marks an important step in addressing this financing gap, which exceeds 5% of the country’s GDP. In just two years, Nabfid approved more than $18 billion in loans targeting key sectors such as roads, rail, electricity and urban development. The agency is now in discussions with the World Bank to further reduce borrowing costs, especially by enhancing the credibility of infrastructure bonds through partial credit enhancement mechanisms. However, despite these efforts, the demand for urban infrastructure in India is expected to require USD 840 billion over the next 15 years, or an average of USD 55 billion per year. Currently, private resources contribute only 5% of this requirement, highlighting the need for innovative financial instruments, policy reforms and risk-delay strategies to mobilize more private and commercial investments. This is especially important in 2 and 3 cities where sustainable urbanization must be carried out, but access to green financing is still limited. Although long-term returns on green infrastructure are often favorable due to lower operating costs and environmental benefits, the lack of accessible financing mechanisms continues to hinder widespread adoption. Bridging this gap will require a joint effort by policy makers, financial institutions and industry stakeholders to create an ecosystem that makes sustainability economically viable and scalable.
A major challenge for India toward sustainable infrastructure is the dispersion of policies and plans. While initiatives such as smart city missions, national action plans for climate change, and newer green hydrogen and energy storage plans reflect government commitments to sustainability, effective implementation requires greater coordination among ministries, especially on overlapping issues. At the local level, integrated planning is essential to ensure that infrastructure projects prioritize long-term environmental impacts rather than focusing solely on direct outcomes. A key step in this journey is the widespread adoption of green building practices in residential and commercial real estate. Emphasizing energy efficiency, the use of sustainable materials and green buildings that reduce environmental footprints not only support environmental sustainability, but also provide long-term economic benefits through savings in operational costs. Despite these advantages, widespread adoption of green building practices in India still faces obstacles, including limited awareness, high upfront costs and inconsistencies in regulations. Addressing these barriers is key to promoting wider acceptance and implementation of green buildings. In addition, enforcing environmental regulations and developing a skilled workforce is crucial to accelerating the growth of green buildings. By overcoming these challenges, India can transform its urban infrastructure, drive sustainability while meeting its rapidly expanding population housing and business needs.
Public awareness is also limited. Although the concept of sustainability has gained appeal in Indian cities, it has not yet become a mainstream consideration in most infrastructure decisions. Citizens, communities and local agencies are key stakeholders in promoting green infrastructure, but their involvement is usually minimal. In order for sustainable infrastructure to flourish, it must be a human-led campaign supported by knowledge, incentives and ownership.
Despite these challenges, the potential benefits of green infrastructure are undeniable. Incorporating natural systems such as wetlands, canopies and green corridors into urban design can help regulate temperature, purify air, manage rainwater and support biodiversity. Urban contributions like Indore and Hyderabad, Bengaluru (Anand/Malligavad) show through thoughtful initiatives such as restoring lakes, developing green belts and adopting ecosystem-based solutions.
Technology also provides new opportunities. Data-driven initiatives using tools such as satellite imaging, GIS mapping, and AI help monitor and optimize green infrastructure projects. Meanwhile, the global shift to climate-aware investment provides new avenues toward green bonds, carbon credit and international development partnerships.
Building solutions must respect nature and empower the community. Whether it is using recycled materials in buildings, integrating water-sensitive designs or ensuring projects have climate overshadows, the private sector must work hand in hand with government, academia and civil society to achieve common sustainability goals.
Finally, sustainable infrastructure has reasonable economic significance. Green buildings reduce energy costs. Environmentally friendly transportation reduces fuel dependence. The well-planned Urban Greenery improves public health and reduces the burden on the health care system. These investments translate into tangible, long-term gains from all stakeholders, including governments, businesses and citizens.
The vision of Green India requires us to move beyond traditional models and redefine progress to explore new possibilities and collaborations to bring these possibilities to life. The road ahead is challenging, but also full of commitment! When we build tomorrow’s infrastructure, we must ensure that it is not only powerful and effective, but also sustainable, inclusive and regenerative!
By Nagaraja YR Nagaraja, Managing Director, Ramky Infrastructure Ltd
