Roads
The length of National Highways is expected to grow from 92,850 kms in 2013-14 to 100,000 kms by end of 2017.

Road and Infrastructure Industry Analysis

Latest update: January, 2016

Decrease in public participation in the sector

•As of August 2015, India constitutes 112 completed and 144 ongoing PPP projects dedicated to roads and highways

•Project awarded under Build-Operate-Transfer (BOT ) mode is 50.56 per cent of the total awarded projects in the year 2015

Passenger vehicle exports from India

Decrease in public participation in the sector

•The total projects awarded by both National Highways Authority of India (NHAI) and the Ministry of Road Transport & Highways stood at 2599.58 km in FY15

•In 2015-16*, only 7 projects (33.58 per cent) of the total 2599.58 kms of NHAI projects awarded has been allocated to Build -Operate-Transfer (BOT) mode

•NHAI is planning to allocate 10 projects under BOT mode   covering 1,000 kilometres by FY16

Passenger vehicle exports from India

 

Last Updated: January, 2016

India has the second largest road network in the world, spanning a total of 4.87 million kilometres (kms). Roads in India transport over 60 per cent of all goods and 85 per cent of total passenger traffic. The roads and bridge infrastructure industry is expected to be worth US$ 19.2 billion by FY17.

The National Highways account for 1.9 per cent of the total road network in India and are expected to reach 100,000 kms by the end of the 2017 from 97,135 kms in FY15. The Government of India has formulated a seven-phase programme, ‘National Highway Development Project (NHDP)’, vested with National Highways Authority of India (NHAI), for the development of National Highways in the country.

The private sector has emerged as a key player in the development of road infrastructure in India. Increased industrial activities, along with increasing number of two and four wheelers have supported the growth in the road transport infrastructure projects. The government’s policy to increase private sector participation has proved to be a boon for the infrastructure industry with a large number of private players entering the business through the public-private partnership (PPP) model. As on March 2015, projects worth USD 32.69 billion have been awarded through PPP model, with as many as 165 PPP projects still under progress. During the next five years, investment through PPP is expected to be US$ 31 billion.

With the Government permitting 100 per cent foreign direct investment (FDI) in the road sector, several foreign companies have formed partnerships with Indian players to capitalise on the sector's growth. 

Sectoral Presentation (January, 2016)

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