(Reuters) - India is home to a quarter of the world’s 20 most densely populated cities. But the slow pace of urban development is harming its cities, which by 2030 will be home to about 590 million people — nearly twice the population of the United States today.
To cater to this growth, India needs to invest $1.2 trillion in capital expenditure, mainly infrastructure, over that period, an eight-fold increase of current spending levels, McKinsey Global Institute (MGI), the research arm of consultancy McKinsey, estimates in a recent report.
The urgency — and the potential — of the Indian urban economy is encapsulated in these numbers:
* India’s GDP is projected to multiply by five times by 2030.
* 590 million people will live in cities in 2030, nearly twice the population of the United States today.
* India could see a 270 million net increase in its working age population by 2030.
* 70 percent of new employment will be generated in cities by 2030.
* 91 million urban households will be middle class, up from 22 million today.
* 68 Indian cities will have population of over 1 million, up from 42 today. Europe currently has 35.
* 700-900 million square meters of commercial and residential space — or a new Chicago — needs to be built every year by 2030
* 2.5 billion square meters of roads will have to be paved, 20 times the capacity added in the past decade in India
* 7,400 kilometers of commuter trains will need to be constructed, 20 times the capacity added in the past decade.
Compiled by Clement Tan; editing by Bill Tarrant