India has the second largest road network in the world, spanning a total of 5.89 million kilometres (kms). This road network transports 64.5% of all goods in the country and 90% of India’s total passenger traffic uses road network to commute. Road transportation has gradually increased over the years with improvement in connectivity between cities, towns and villages in the country.
In India, sale of automobiles and movement of freight by roads is growing at a rapid rate.
Highway construction in India increased at 21.44% CAGR between FY16–FY19. In FY19, 10,855 km of highways were constructed, and the Government has set a target for constructing 12,000 km of national highways in FY20. In March 2020, NHAI (National Highways Authority of India) accomplished the highest ever highway construction of 3,979 kms.
In April 2020, the Government set a target of constructing roads worth Rs 15 lakh crore (US$ 212.80 billion) in the next two years.
Huge investments have been made in the sector with total investment increasing more than three times from Rs 51,914 crore (US$ 7.43 billion) in 2014–15 to Rs 158,839 crore (US$ 22.73 billion) in 2018–19.
The Government of India has allocated Rs 111 lakh crore (US$ 1.4 trillion) under the National Infrastructure Pipeline for FY 2019–25. The roads sector is likely to account for 18% capital expenditure over FY 2019–25
The Union Minister of State for Road, Transport and Shipping has stated that the Government aims to boost corporate investment in roads and shipping sector, along with introducing business-friendly strategies, that will balance profitability with effective project execution. According to the data released by Department for Promotion of Industry and Internal Trade Policy (DPIIT), construction development^ sector attracted Foreign Direct Investment (FDI) inflow worth US$ 25.66 billion in the between April 2000 and March 2020.
Some of the recent Government initiatives are as follows:
Following are the achievements of the Government in the past four years:
The Government, through a series of initiatives, is working on policies to attract significant investor interest. A total of 200,000 km of national highways is expected to be completed by 2022.
In the next five years, National Highway Authority of India (NHAI) will be able to generate Rs 1 lakh crore (US$ 14.30 billion) annually from toll and other sources.
Note: Conversion rate used in April 2020, Rs 1 = US$ 0.013123
References: Media Reports, Press Releases, Ministry of Road Transport and Highways, NHAI website, Press Information Bureau (PIB)
Notes: ^FDI in construction development Includes: Townships, housing, built-up infrastructure and construction-development projects
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Packaging plays a pivotal role in consumers’ experience with respect to the brand and the overall purchasing experience. There are four major functions of packaging...
India has approximately 6.33 crore micro, small and medium enterprises (MSMEs). The number of registered MSMEs grew 18.5% YoY to 25.13 lakh units in 2020, from 21.21 lakh...
With enhanced networks, stronger internet connectivity and multimedia service-capable mobiles, the presence of Indian subscribers on over-the-top (OTT) platforms is incre...
India has an ambitious plan to create a US$ 5 trillion economy by 2025. To achieve this goal, the country is focussing on knowledge economy-led development. Knowledge-dri...
As a first step on the pathway towards low-carbon economic growth, India has set ambitious targets for both reducing carbon emissions and deploying more clean energy. As ...
India is a vast and geographically diverse country with 28 States and 8 Union Territories (UT). India plans to become a US$ 5 trillion economy by 2024 and th...