India will need an estimated Rs 168–172 trillion in infrastructure investment through FY31, but a substantial portion of the requirement has yet to enter the announced project pipeline, according to a joint report by the National Bank for Financing Infrastructure and Development (NaBFID) and Boston Consulting Group (BCG).
The report, titled Channelizing Domestic and Global Capital for Infrastructure Financing, estimates that around Rs 78–80 trillion of the total requirement is yet to be reflected in an announced project pipeline. Of the overall investment requirement through FY31, Rs 38–40 trillion has already been financed, while projects worth Rs 31–32 trillion are awaiting financial closure. Another Rs 21–22 trillion is currently classified as stalled.
Infrastructure Requirement Could Reach Rs 680–770 Trillion by 2047
India’s infrastructure financing needs are expected to increase substantially over the longer term. The report estimates that the country could require Rs 680–770 trillion in infrastructure investment through 2047.
Meeting this requirement will depend on developing projects that are financially viable and can be matched with suitable sources of capital. According to the report, only 34–36% of the infrastructure investment requirement for FY26–47 falls within sectors that currently have established and bankable financing models.
Meanwhile, sectors such as metro rail, water supply, irrigation and new railway lines account for around 55–57% of the requirement but often lack standalone financial viability despite their broader socio-economic benefits.
The report also noted that greenfield projects account for approximately 80–85% of the forward pipeline, while urban infrastructure is expected to represent nearly half of India’s infrastructure demand through 2047.
Greater Private Sector Participation Needed
NaBFID Managing Director and Chief Executive Officer Rajkiran Rai G said achieving the Viksit Bharat 2047 vision would require infrastructure development to move ahead of economic growth.
He said government capital expenditure would need to be supported by private sector funding to meet India’s large infrastructure requirements.
According to Rai, stronger project preparation, commercially viable structures, better risk allocation and recycling of capital could help attract greater participation from both domestic and international investors throughout the project lifecycle.
New Financing Routes Could Help Bridge the Gap
The report estimates that existing sources of capital can meet most of India’s infrastructure financing requirements for FY26–31, although an annual residual funding gap of around Rs 2–3 trillion is expected to remain.
Domestic financial institutions currently have around Rs 2–3 trillion of undeployed capacity within existing regulatory limits. The report identified three financing mechanisms that could be scaled up to support infrastructure investment.
These include partial credit enhancement to improve access to institutional bond markets, Infrastructure Investment Trusts (InvITs) for recycling capital from operational assets, and Alternative Investment Funds (AIFs) along with private credit.
Global alternative infrastructure assets under management stood at USD 1.8 trillion in 2025, offering another potential source of capital for India’s infrastructure sector.
Commercial Viability Key to Building a Sustainable Pipeline
BCG Managing Director and Senior Partner Ashish Garg said India requires Rs 168–172 trillion of infrastructure investment through FY31, with approximately Rs 90–92 trillion already included in the announced pipeline.
He highlighted the need for financing structures and commercial frameworks to evolve as the country’s infrastructure priorities change. With urban infrastructure expected to account for a larger share of future investment, viable commercial models, dependable revenue streams and enforceable payment mechanisms will be important for making more projects financeable.
The report noted that only 34–36% of the FY26–47 infrastructure requirement currently falls within sectors with proven, bankable financing models.
Garg also said maintaining a steady project pipeline would require capital to move efficiently through different stages of the project lifecycle. Recycling mature operational assets could help unlock capital and redirect it toward new greenfield infrastructure projects.
Disclaimer
This article is based on information and figures provided in the cited report and statements attributed to the officials mentioned. Infrastructure investment requirements, project pipelines and financing conditions may change over time. Readers should refer to official reports and primary sources for the latest information.