India’s infra build out is vital for the Viksit Bharat vision. But financing is a challenge

Trains faster than planes? Yes, you read it right, and it could be a reality soon. China recently tested magnetic levitation (Maglev) technology trains running at 600 kmh. India is experimenting with 1,100 kmh hyperloop technology, which can cover the Delhi to Mumbai distance in just over an hour. Hyperloop uses capsules supported by an air-bearing surface within a low-pressure tube. A 410-metre-long hyperloop test tube is already operational in IIT Chennai. The government is now planning the development of a 50-km hyperloop corridor—the longest in Asia—for commercial transport. This will completely change train travel. This is part of a series of futuristic infrastructure projects related to urban development, smart mobility, energy transition, and social and digital infrastructure that India is exploring keeping in mind its aspiration to become a developed economy by 2047. Nilachal Mishra, Partner and Head, Government &amp; Public Services, KPMG, says by 2047, India is expected to undergo a significant transformation in how people and goods move, how cities grow, and how energy is produced and consumed. “Overall, India’s infrastructure future will likely be shaped by a blend of technology, inclusivity, and sustainability with global learnings adapted to domestic needs,” he tells Business Today. However, these goals are constrained by a significant infrastructure financing gap, exceeding 5% of its GDP, according to the World Bank. Despite a substantial increase in public investment (central government spending has more than doubled from FY21 to Rs 11,11,111 crore in FY24), private capital remains largely untapped. Institutional investors, like insurance and pension funds, allocate only 6% of their funds to infrastructure. Long gestation periods and high capital requirements of infrastructure projects deter traditional lenders, exacerbating the financing gap. To achieve its ambitious infrastructure goals, India needs greater private sector involvement and streamlining of policy to ensure ease of doing business. The FUTURE OF MOBILITY Smart, integrated, and sustainable mobility solutions will push the country towards its 2047 journey, say experts. Air and water taxis, flying pods, drone taxis, shift from vehicle ownership to Mobility as a Service, driverless vehicles, and common mobility cards are already on the discussion table. Vaibhav Dange, a public policy expert on infrastructure, believes addressing critical areas is crucial for building future-ready infrastructure. “While electric vehicles are a step in the right direction, they won’t solve the pressing issue of traffic congestion. Instead, we need to focus on developing a robust public transport system that promotes mass mobility and reduces reliance on personal vehicles,” he says. Dange suggests that urban planning strategies, such as cluster development, can significantly reduce commute times and improve the overall quality of life. Moreover, he advocates exploring multimodal sustainable solutions like flying pods, water taxis, and hyperloop systems to drive future growth. India’s infrastructure future will likely be shaped by a blend of technology, inclusivity, and sustainability with global learnings adapted to domestic needs. -NILACHAL MISHRA,Partner and Head, Government &amp; Public Services, KPMG Urban India is expected to witness drastic changes in mobility requirement, pattern, and structure. Wheeled vehicles are still likely to roam city streets, and existing transit networks will remain highly utilised, but how the mobility services are propelled, driven, interconnected, paid for and managed will get transformed, according to the ‘Envisioning Urban India @2047’, a document by KPMG. As India looks to improve its freight segment, dedicated freight corridors and the Unified Logistics Interface Platform (ULIP) already signal a shift towards coordinated, digitised logistics. “Further progress in multimodal logistics hubs and green freight practices, like those adopted in the European Union’s Green Freight Programme, could improve efficiency and reduce carbon intensity,” he adds. Vinayak Chatterjee, Founder &amp; Managing Trustee, the Infravision Foundation, an independent think tank, says key things that will drive the future of mobility are ropeways for urban commute, a Unified Metropolitan Transport Authority to manage all city transportation, including roads, buses, and metro systems, aiming for better public transport efficiency and integration and air taxis. Indigo already has a licence for 1,000 air taxis; even airport operators gearing up for the service. New Energies Energy infra is also expected to undergo major shifts. Three key future energy investment areas include green hydrogen, battery storage, and pump storage projects. India has over 233 GW of renewable energy capacity as against an ambitious target of 500 GW of non-fossil fuel capacity by 2030. To support economic growth and electrification of mobility and industry, this capacity would need to expand significantly over the next two decades. “The integration of utility-scale battery storage, smart grids, and time-of-day pricing mechanisms may help address intermittency and demand fluctuations. Decentralised solutions like rooftop solar, microgrids, and community-based energy systems could also play a larger role, especially in rural and peri-urban areas. In parallel, the National Green Hydrogen Mission, which targets five million metric tonnes per year by 2030, signals a growing interest in alternative fuels for heavy industry and long-haul transport,” says Mishra. Urban Focus Urban infrastructure, in turn, will likely need to support both growth and resilience. With urban population projected to exceed 820 million by 2047, cities could benefit from infrastructure that is not just service-oriented, but also sustainable and digitally enabled. Compact, transit-oriented development can help reduce travel distances and emissions, while integrated water, sanitation, and waste systems will improve public health. “Cities like Vienna and Copenhagen have shown how affordable housing, local energy solutions, and turning waste into energy can make urban living more inclusive and climate friendly. In India, while missions like Smart Cities and the National Urban Digital Mission laid the groundwork, more recent efforts such as the Urban Infrastructure Development Fund and state-level climate action plans are helping scale up these approaches in a more systematic and future-ready way,” says Mishra. Chatterjee explains that the public-private partnerships are going to shift towards social infrastructure. “You are going to see a shift in PPP from core infra to social sector such as health, education, drinking water because the core is already reaching levels of maturity and is self-sustaining,” he says. The growth is driven through digital transformation. By harnessing new-age digital technologies, data-driven decision making, adopting a sustainable approach to infrastructure development and putting in a robust governance, cities can progressively meet their sustainable growth objectives as India becomes a high-performing economy by 2047. We need to focus on developing a robust public transport system that promotes mass mobility and reduces reliance on personal vehicles. -VAIBHAV DANGE,Public Policy Expert on Infrastructure Financing Methods As India charts its path to Viksit Bharat by 2047, financing infrastructure at scale will require a thoughtful blend of public investment and innovative private capital mobilisation. Public funding will understandably continue to play a central role, especially in areas with strong social returns. Given the scale of ambition outlined in the National Infrastructure Pipeline (NIP)—estimated at $1.4 trillion— there is a growing case for expanding the use of blended finance. Combining concessional public funds with private capital can de-risk complex or early-stage projects, thereby making them more attractive for investment. Established in 2021, the National Bank for Financing Infrastructure and Development (NaBFID) was created to tackle India’s infrastructure financing challenges. It has raised over $3 billion through bond issuances across four tranches, with an average maturity exceeding 14 years. “Overall, a coordinated policy approach—combined with diversified, resilient financing mechanisms—will be central to delivering India’s infrastructure ambitions. The groundwork is already in place; the opportunity now lies in fostering innovation and scaling up what works,” says Mishra. However, ease of doing business remains a key challenge. Dange concurs. “It’s not just about securing funds, but also creating an enabling environment that fosters innovation, efficiency, and collaboration,” he says. The infrastructure for the future—flying taxis and hyperloops—will require a mix of innovative ideas, accessibility, financing, and policy amendments to achieve the Viksit Bharat goal. @richajourno

India’s infra build out is vital for the Viksit Bharat vision. But financing is a challenge

Hyperloop, flying pods, climate resilient and smart urban amenities with integrated water, sanitation and waste systems are a must for India to become a developed country by 2047. However, financing remains a challenge.