Reimagining Transport: India's $4.5B Opportunity to Combat Climate Risks

A Boston Consulting Group and Coalition for Disaster Resilient Infrastructure report reveals a $4.5 billion opportunity for India to bolster transport infrastructure against climate risks by 2030. With immense exposure to climate-related disasters, urgent resilience measures are necessary to protect critical assets and support sustainable growth in South Asia.

A recent report by Boston Consulting Group (BCG) and the Coalition for Disaster Resilient Infrastructure (CDRI) reveals a staggering USD 4.5 billion opportunity for India to fortify its transport infrastructure against climate risks by 2030. The study highlights the pressing need to enhance resilience measures to protect vital assets and ensure sustainable economic growth in South Asia, a region severely affected by climate-related disasters.

South Asia's infrastructure, valued over USD 2 trillion, faces significant threats from disasters like floods, cyclones, and heatwaves, with 30% of the risk associated with the transport sector. In India, USD 400 billion worth of transport assets are particularly vulnerable, stressing the urgency for resilience strategies to safeguard infrastructure and maintain economic stability.

Globally, transport infrastructure constitutes over 50% of exposed assets, estimated at USD 90 trillion in 2022. Climate disruptions could heavily impact agriculture, manufacturing, and supply chains, risking 4-8% of South Asia's GDP. With disasters in 2023 inflicting USD 202 billion in global damages, the consequences of inaction are escalating.

Amit Prothi, Director General of CDRI, emphasized the potential economic, environmental, and social benefits of reimagining transport infrastructure. India, poised to submit its first national adaptation strategy next year, is already initiating efforts against climate risks.

The report projects resilience measures in South Asia's transport sector could avert over USD 1 billion in damages annually, providing substantial economic and environmental benefits. "With USD 400 Billion worth of transport assets in India exposed, rapid implementation of resilience measures is critical," asserted Vineet Vijayavargia, BCG Managing Director and Partner.

Incentivizing corporate participation is crucial for driving investments in resilience. Resilience financing currently falls short, covering only 20-30% of the required USD 215-USD 387 billion annually for developing countries by 2030. Anirban Mukherjee, BCG Managing Director and Partner, noted, "India, accounting for 80% of South Asia's asset exposure, has a pivotal opportunity to mitigate infrastructure losses through integrated resilience strategies." (ANI)

(With inputs from agencies.)