Last Updated: July 15, 2020
Last Updated: June, 2020
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 per cent of all goods in the country and 90 per cent 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 per cent 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 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 including townships, housing, built-up infrastructure and construction-development projects attracted Foreign Direct Investment (FDI) inflow worth US$ 25.66 billion were recorded in the construction development^ sector 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.
Last Updated: July 15, 2020
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