Page 24 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

two-fifth of the global penetration in 2024. It continues to show an increasing trend, though relatively
slow. This calls for measures to give a stronger push to the EV transition.

8. India has a critical opportunity to drive resilient urban development- World Bank report

A new World Bank report notes that Indian cities hold tremendous potential as centres of economic
growth with 70 percent of new jobs coming from cities by 2030. However, timely action is needed for
cities to deal with impacts from extreme weather events and avert billions of dollars in future losses.

The report titled Towards Resilient and Prosperous Cities in India, prepared in close collaboration with
the Ministry of Housing and Urban Affairs, states that with India’s urban population expected to almost
double by 2050 to 951 million, more than 144 million new homes will be needed by 2070. At the same
time, intense heat waves and urban heat island effects are already causing temperatures in city centres
to rise by over 3-4 degrees over surrounding areas. The rapid growth of built-up areas is also reducing
cities’ capacity to absorb storm water, making them more vulnerable to floods.

The new report, which studied 24 Indian cities, with a special focus on Chennai, Indore, New Delhi,
Lucknow, Surat and Thiruvananthapuram, finds that timely adaptation can avert billions of dollars of
annual losses from future weather-related shocks. For example, annual pluvial flood-related losses can be
averted and can amount to $5 billion by 2030, and $30 billion by 2070. Investments in adaptation will also
save over 130,000 lives from extreme heat impacts by 2050.

With over 50 percent of the urban infrastructure required for 2050 still to be built, India has a critical
opportunity to drive resilient urban infrastructure development.

To urgently help Indian cities and support vulnerable populations, this report outlines key
recommendations:

1. Implement programs to address extreme urban heat and flooding, including better regulation of
stormwater, green spaces, installation of cool roofs, and effective early warning systems.

2. Invest in resilient infrastructure and municipal services, energy efficient and resilient housing,
modernize solid waste management, and make urban transport flood resilient.

3. Improve access to urban finance through better private sector engagement.

The report estimates that investments of over $2.4 trillion will be needed by 2050 to meet the need for
new, resilient, and low-carbon infrastructure and services in cities. The private sector’s role will be critical
in meeting these investments.

The report cites how several cities in India are already taking urgent steps to build
resilience. Ahmedabad has developed a Heat Action Plan model which aims to strengthen early warning
systems, improve healthcare readiness, increase green cover and shift work schedules for outdoor
laborers. Kolkata has adopted a city-level flood forecasting and warning system. Indore has invested in a
modern solid waste management system, improving cleanliness and supporting green jobs. Chennai has

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