India needs up to Rs 172 trillion infrastructure investment by FY31 to turn demand into financeable projects: NaBFID-BCG Report

New Delhi: India requires Rs 168-172 trillion of infrastructure investment through FY31, with Rs 78-80 trillion yet to translate into an 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', stated that out of the total requirement through FY31, Rs 38-40 trillion has been financed, Rs 31-32 trillion awaits financial close, and Rs 21-22 trillion remains classified as stalled. Financing the country's long-term infrastructure demand of Rs 680-770 trillion through 2047 depends on building bankable projects and matching them with appropriate capital pools.

The report pointed out that only 34-36 per cent of the FY26-47 investment requirement sits in sectors with proven, bankable financing models. Sectors accounting for 55-57 per cent of the requirement, such as metro rail, water supply, irrigation, and new rail lines, lack standalone financial viability despite delivering wide socio-economic gains. Greenfield projects make up 80-85 per cent of the forward pipeline, while urban infrastructure represents nearly half of the demand through 2047.


Rajkiran Rai G, Managing Director and Chief Executive Officer of NaBFID, said "Viksit Bharat 2047 will require infrastructure to precede growth. Meeting India's significant infrastructure requirement will require government capex to be complemented by private sector capital."

"Stronger project preparation, commercial bankability, risk allocation and capital recycling can enable greater participation from domestic and global capital pools across the project lifecycle," he added.

Existing capital pools can cover most of the FY26-31 demand, leaving an annual residual gap of Rs 2-3 trillion. Domestic institutions hold about Rs 2-3 trillion of undeployed capacity within current regulatory ceilings. The report outlined three scalable financing routes: partial credit enhancement to tap institutional bond markets, Infrastructure Investment Trusts (InvITs) to recycle operational assets, and Alternative Investment Funds (AIFs) alongside private credit. Global alternative infrastructure assets under management, which reached USD 1.8 trillion in 2025, also offer potential capital inflows.

Ashish Garg, Managing Director and Senior Partner at BCG, emphasized the need to align commercial frameworks with changing sector demands.

"India requires Rs 168-172 trillion of infrastructure investment through FY31, with around Rs 90-92 trillion already in the announced pipeline," Garg said. "As the sector mix shifts toward areas such as urban infrastructure, viable commercial models, reliable revenue mechanisms and enforceable payment structures will be critical to making more projects financeable; today, only 34-36% of FY26-47 requirements sit in sectors with proven, bankable financing models."

"A sustained pipeline will also require capital and investor rotation across the project lifecycle, with mature operating assets recycled to release capital for new greenfield projects," he stated.