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Indian Roads Analysis

October, 2014

India has the second-largest road network in the world, spanning a total of 4.7 million kilometres (km). This network comprises 155,716 km of State Highways, 79,116 km of national highways and 4,455,010 km of district and rural roads. Roads in India transport over 60 per cent of all goods in the country and 85 per cent of total passenger traffic.

The total value of roads and bridges infrastructure in India is expected to grow at a compound annual growth rate (CAGR) of 17.4 per cent over FY12-17 to reach US$ 19 billion. National highways account for 1.7 per cent of the total road network in India. Double-lane highways constitute the largest share of highways in India (40,658 km). It is followed by single/intermediate-lane (19,330 km) and four/six/eight-lane (19,128 km) highways.

The Government of India aims to develop a total of 66,117 km of roads under various programmes such as National Highway Development Project (NHDP), Special Accelerated Road Development Programme for the North Eastern Region (SARDP-NE) and Left Wing Extremism Programme (LWE). With the Government permitting 100 per cent foreign direct investment (FDI) in the road sector, most foreign companies have formed partnerships with Indian players to capitalise on the sector's growth.

Development of national highways through public-private partnership (PPP) is expected to remain the key focus area for the government. Over the next five years, investments through PPP are expected to be over US$ 41 billion for national highways and around US$ 10 billion for state highways. National Highway Authority of India (NHAI) aims to award 2,500 km of projects in FY14.

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