Building Greener India: Bridging Growth, Sustainability Through Smart Infrastructure
As India eyes a $35 trillion economy by 2047, sustainable infrastructure emerges as the key to bridging growth, equity, and climate resilience
As India moves rapidly towards transforming into a high-income, developed economy by 2047 with a per capita income of US$26,000 and a GDP of US$35 trillion, challenges remain in the form of infrastructure deficits and the urban-rural divide. While overcoming these, it is critical to consider the accompanying environmental concerns.
Y.R. Nagaraja, Managing Director, Ramky Infrastructure Ltd
As we build roads, bridges, cities, and power infra to support the fast-growing economy, we must also ask ourselves if we are building for resilience in a world filled with risk? The answer lies in our commitment to sustainable infrastructure through an approach that not only meets the needs of the present but also safeguards the future.
Sustainable infrastructure is more than an engineering concept; it is a vision for a better India. It means embedding sustainability into the DNA of development by designing and executing projects in ways that conserve natural resources, reduce emissions, and improve the quality of life for people across regions and income levels. Carbon dioxide has a long shelf-life in the atmosphere due to which much of the climate change impact to take place over the next few decades has already been determined by historic emissions. Hence, we must prepare for climate change whatever the trajectory of future greenhouse gas emissions.
However, the transition to greener infrastructure is often constrained by financial barriers, as sustainable projects require higher upfront investments than conventional ones. Long gestation periods and substantial capital needs deter traditional lenders, widening the infrastructure financing gap. Recognizing this challenge, the World Bank Group has been instrumental in helping developing nations build smart, inclusive, and sustainable infrastructure through low-interest loans, grants, advisory services, and mechanisms to attract private sector participation. In India, the establishment of the National Bank for Financing Infrastructure and Development (NaBFID) in 2021 marked a significant step towards addressing this financing gap, which exceeds 5% of the country’s GDP. In just two years, NaBFID sanctioned over $18 billion in loans, targeting critical sectors such as roads, railways, power, and urban development. The institution is now in discussions with the World Bank to further reduce borrowing costs, particularly by enhancing the creditworthiness of infrastructure bonds through partial credit enhancement mechanisms. Yet, despite these efforts, India’s urban infrastructure needs are projected to require $840 billion over the next 15 years, averaging $55 billion annually. Currently, private sources contribute only 5% of this requirement, highlighting the need for innovative financial instruments, policy reforms, and de-risking strategies to mobilize more private and commercial investments. This is particularly critical in Tier 2 and 3 cities, where sustainable urbanization is imperative but access to green financing remains limited. While long-term returns on green infrastructure are often favorable due to lower operational costs and environmental benefits, the lack of accessible financing mechanisms continues to hinder widespread adoption. Bridging this gap will require a concerted effort from policymakers, financial institutions, and industry stakeholders to create an enabling ecosystem that makes sustainability both economically viable and scalable.
A significant challenge in India’s move toward sustainable infrastructure lies in the fragmentation of policy and planning. While initiatives such as the Smart Cities Mission, the National Action Plan on Climate Change, and the more recent Green Hydrogen and Energy Storage schemes reflect the government’s commitment to sustainability, effective implementation requires greater coordination across ministries, particularly on overlapping issues. At the local level, integrated planning is critical to ensure infrastructure projects prioritize long-term environmental impacts rather than focusing solely on immediate outcomes. A crucial step in this journey is the widespread adoption of green building practices in both residential and commercial real estate. Green buildings, which emphasize energy efficiency, the use of sustainable materials, and reduced environmental footprints, not only support environmental sustainability but also provide long-term economic benefits through operational cost savings. Despite these advantages, the widespread adoption of green building practices in India faces hurdles, including limited awareness, high upfront costs, and inconsistent regulations. Addressing these barriers is key to facilitating the broader acceptance and implementation of green buildings. Additionally, enforcing environmental regulations and fostering a skilled workforce are essential to accelerating the growth of green construction. By overcoming these challenges, India can transform its urban infrastructure, advancing sustainability while meeting the housing and commercial needs of its rapidly expanding population.
Public awareness is also limited. While the concept of sustainability is gaining traction in urban India, it has yet to become a mainstream consideration in most infrastructure decisions. Citizens, communities, and local bodies are critical stakeholders in the push for green infrastructure, yet their participation is often minimal. For sustainable infrastructure to thrive, it needs to be a people-led movement, supported by knowledge, incentives, and ownership.
Despite these multiple challenges, the potential benefits of green infrastructure are undeniable. Incorporating natural systems such as wetlands, tree canopies, and green corridors into urban design can help regulate temperature, purify air, manage stormwater, and support biodiversity. Cities like Indore and Hyderabad, Bangalore (Anand /Malligavad) contribution are showing what’s possible through thoughtful initiatives, such as restoring lakes, developing green belts, and adopting ecosystem-based solutions.
Technology also presents new opportunities. Data-driven planning using tools like satellite imaging, GIS mapping, and AI help monitor and optimise green infrastructure projects. At the same time, the global shift toward climate-conscious investing opens new avenues for funding through green bonds, carbon credits, and international development partnerships.
Building solutions must respect nature and empower communities. Whether it's using recycled materials in construction, integrating water-sensitive designs, or ensuring that projects are climate-resilient, the private sector must work hand-in-hand with governments, academia, and civil society to achieve shared sustainability goals.
Finally, it is a fact that sustainable infrastructure makes sound economic sense. Green buildings reduce energy costs. Eco-friendly transportation lowers fuel dependence. Well-planned urban greenery improves public health, lowering the burden on healthcare systems. These investments translate into tangible, long-term gains for all stakeholders including governments, businesses, and citizens.
The vision of a greener India requires us to move beyond conventional models and redefine progress to explore new possibilities and collaborations to bring those possibilities to life. The road ahead is challenging, but it is also filled with promises! And as we build the infrastructure of tomorrow, we must ensure it is not only strong and efficient but also sustainable, inclusive, and regenerative!
By Y.R. Nagaraja, Managing Director, Ramky Infrastructure Ltd