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India Urban Infrastructure Transformation

India’s urban infrastructure transformation presents a major opportunity for U.S. companies, driven by Government of India (GOI) initiatives like Atal Mission for Rejuvenation and Urban Transformation (AMRUT). The goal of AMRUT program is to enhance urban infrastructure and improve service delivery across 500 cities. The mission aims to achieve universal coverage of water supply, streamline sewerage treatment, develop green spaces, and leverage technology for improved urban management.

AMRUT 2.0, launched in 2021, has a total indicative outlay of approximately $35 billion. As of the end of 2024, there have been 8,998 projects worth $21.8 billion approved, with contracts awarded for 4,916 projects valued at $9.8 billion. Completed projects total $2.65 billion, and investments in urban water and wastewater infrastructure are expected to reach $122 billion by 2030. The initiative has significantly improved urban services, with tap water coverage increasing to 70% and sewerage coverage rising to 62% across 500 cities. The mission also promotes smart water metering solutions, with the market forecasted to grow at a CAGR of 18.9%, reaching $180.2 million by 2030. Furthermore, AMRUT emphasizes governance reforms, including double-entry accounting, GIS-based property tax systems, and increased transparency in fund utilization, strengthening urban governance and improving the financial health of Urban Local Bodies (ULBs).

For U.S. companies, this transformation created numerous business opportunities:

  • Smart Water Management & Metering: AMRUT 2.0 drives demand for Advanced Metering Infrastructure (AMI) solutions, including NB-IoT, LoRaWAN, and AI-powered leak detection systems. U.S. companies specializing in IoT-based water management, smart sensors, predictive analytics, and water conservation technology can tap into this growing market.
  • Wastewater Treatment & Recycling: India aims to treat 100% of urban wastewater by 2030, opening doors for sewage treatment plant (STP) providers, modular water treatment solutions, and bio-digester technology, as is membrane bioreactors (MBR), anaerobic digestion, and sludge management technologies.
  • Green and Sustainable Urban Development: Urban planners are seeking to partner with vertical gardens, green roofs, and low-carbon building materials companies. Sustainable drainage systems, flood management, and rainwater harvesting solutions are in high demand.
  • Smart City Solutions & Digital Infrastructure: Smart city initiatives under AMRUT require GIS-based property mapping, AI-driven traffic management, and city-wide monitoring solutions, creating opportunities for U.S. companies with that expertise.
  • Urban Mobility & Public Transport: Opportunities exist in electric vehicle (EV) infrastructure, intelligent transport systems (ITS), and last-mile connectivity solutions. U.S. companies can collaborate with Indian partners in metro rail, bus rapid transit (BRT), and shared mobility projects.

For entry into the Indian market, U.S. companies should identify quality partners who know the business landscape well. Strategic planning, due diligence, and consistent follow-ups are the prerequisites for success in India. Additional market entry strategies include:

  • Joint ventures with Indian firms for technology transfer and collaboration.
  • Direct investments in public-private partnerships (PPPs) for infrastructure development.
  • Supplier agreements with Indian municipal bodies and urban local bodies (ULBs) for supply of goods and services.
  • Participating in government tenders under AMRUT 2.0 for various projects.

The U.S. Commercial Service in India offers customized solutions to help U.S. businesses in the Indian market. For more information regarding upcoming events and opportunities in this sector, U.S. firms can contact the U.S. Commercial Service India team for environment and water technologies or reach out to your local U.S. office in your state.