A joint report from NaBFID and Boston Consulting Group highlights that India must mobilise up to Rs 172 trillion in infrastructure investment by FY31 to sustain its economic growth, amid challenges in project financing and execution.
India will need as much as Rs 172 trillion in infrastructure investment by FY31 if it is to keep pace with its growth ambitions, according to a joint report from NaBFID and Boston Consulting Group. The study says the challenge is not just the size of the funding requirement, but the need to convert demand into projects that lenders and investors can actually back.
The report, titled “Channelizing Domestic and Global Capital for Infrastructure Financing”, estimates that Rs 38 trillion to Rs 40 trillion of the FY31 requirement has already been financed, while Rs 31 trillion to Rs 32 trillion is still waiting to reach financial close. A further Rs 21 trillion to Rs 22 trillion is described as stalled. Looking further ahead, the report puts India’s infrastructure need at Rs 680 trillion to Rs 770 trillion through 2047.
NaBFID and BCG argue that only about 34% to 36% of the investment needed between FY26 and FY47 sits in sectors with tried-and-tested financing models. They say large parts of the future pipeline, including metro rail, water supply, irrigation and new rail lines, deliver clear social benefits but often do not stand alone as commercial propositions. Greenfield projects account for 80% to 85% of the pipeline, while urban infrastructure makes up nearly half of total demand through 2047, according to the report.
Rajkiran Rai G, managing director and chief executive of NaBFID, said India’s infrastructure push must come before, and not after, growth. Ashish Garg, managing director and senior partner at BCG, said future funding will depend on stronger project preparation, clearer revenue structures and more reliable payment mechanisms. The report says existing capital pools can cover most of the FY26-31 requirement, leaving an annual residual gap of Rs 2 trillion to Rs 3 trillion, and points to credit enhancement, infrastructure investment trusts and private credit as ways to attract more money into the sector.
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