In coming 20 years, India needs to invest $2.2 trillion (Rs 97.35 lakh crore) on its cities to meet the urban infrastructure demands, the global consultancy firm McKinsey says in its latest report. The study further states that 40 percent of India’s population - an estimated 590 million population is likely to live in the cities by year 2030.

In its report – India’s urban awakening, McKinsey migration to the cities by its population is the fastest addition to an urban population of any country in history outside of China. The report also highlights “India will have to build between 700 million and 900 million square metres of residential and commercial space a year.”

India needs massive investment in infrastructure as some say that India will need to invest $1 trillion on infrastructure over the next 10 years. The report further adds, “the lack of serious policies to manage urbanisation could seriously jeopardise even the 7.4 percent growth rate currently assumed, thus risking high unemployment.”

India cities will account for nearly 70 percent of India’s GDP as against 58 percent in 2008, the report reveals.

Making aware of how much India needs just in water the report states that for an average citizen water supply could drop from an average 105 litres to barely 65 litres a day, with a large section of the population having no access to portable water at all.

In the transportation, India will have to build modern infrastructure to meet the demand of its population in the next 30 years. The report adds that India needs to build 350 to 400 km of metros and subways every year. It is more than 20 times it has achieved in the past decade.

In the urban housing sector, the report cites that government will be required to directly construct 60 percent of the affordable housing stock, while 40 percent can be cross-subsidised by the market.

The report has pointed out cities as the new centre for prosperity. It says that India will have 68 cities with populations of more than 1 million, 13 cities with more than four million people, and six mega cities with populations of 10 million or more, at least two of which (Mumbai and Delhi) will be among the five largest cities in the world by 2030.

The report also said five states - Maharashtra, Tamil Nadu, Karnataka, Punjab and Gujarat — where more people will live in the cities than in the villages by 2030.

The report has suggested for implementation of the 74th Constitutional Amendment for devolution of powers to cities to make the delivery of services more efficient.