NEW DELHI, July 22, 2025 - A new World Bank report notes that Indian cities hold tremendous potential as centers 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 centers 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.
"The imperative for India to build resilient cities at scale is clear. By investing in more green and resilient urban development-including housing, transport, and municipal services - cities can better mitigate extreme heat conditions and urban floods, and continue to grow and create jobs," said Auguste Tano Kouamé, World Bank Country Director.
To urgently help Indian cities and support vulnerable populations, this report outlines key recommendations:
- 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.
- Invest in resilient infrastructure and municipal services, energy efficient and resilient housing, modernize solid waste management and make urban transport flood resilient.
- Improve access to urban finance through better private sector enagagement.
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.
"Many Indian cities are showing the way to improve adaptation measures, benefit from good practices and fast track actions towards resilient urban growth," said Asmita Tiwari and Natsuko Kikutake, co-authors of the report. "Timely interventions will help India's cities continue to safeguard lives and properties, attract new businesses and jobs, and drive innovation."
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 adopted a climate action plan based on thorough risk assessment and targeting both adaptation and low-carbon growth.
The report was supported by a multi-donor trust fund, Global Facility for Disaster Reduction and Recovery (GFDRR).
