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Roads: Jan 2011

January, 2011

India has one of the largest road networks in the world, aggregating to a total length of 3.3 million km. Roads account for 80 per cent of passenger traffic and 65 per cent of freight traffic in India.

Broadly, the road network in India is divided into the primary (National Highways (NH)) and secondary system (State Highways and major district roads). In addition, the network comprises expressways, rural and other roads. The NH account for only two per cent of the total road length and carry 40 per cent of the total road traffic.

India’s construction sector is expected to grow at about 35 per cent between 2008–09 and 2012–13. The private sector is expected to contribute 44 per cent of the total projected spend of US$ 100 billion (INR 4.6 trillion) on roads and highways over the Twelfth Five Year Plan period.

With the Government of India (GoI) permitting 100 per cent foreign direct investment (FDI) in the roads sector, most foreign investors in the Indian roads sector have formed consortiums with Indian companies to participate in the development of road projects in the country. Cumulative FDI inflow to the construction sector (including roads and highways) has been estimated at US$ 8,347.0 million (INR 370,450 million) between April 2000 and August 2010.

Sectoral Presentation (November 2010)

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