Advantage India
Robust
Demand
*Vehicle demand continues to support growth. During April–February FY26, India’s automobile sector maintained strong momentum, with total production exceeding 31 million passenger vehicles, commercial vehicles, two-wheelers, three-wheelers, and quadricycles.
*Electric passenger vehicle adoption also accelerated sharply, with registrations rising more than 80% during the year, contributing to overall growth.Passenger vehicle sales to dealers grew nearly 4% in April 2025, led by demand for utility vehicles (UV).
Attractive
Opportunities
*India has joined the league of 15 of global alliance which will work towards the ethical use of smart city technologies.
*Road building in India is the second least expensive in Asia.
*India is focusing on green hydrogen fuel infrastructure along national highways as the next step in its transport strategy. The Ministry of Road Transport and Highways (MoRTH) will launch a pilot project worth Rs. 600 crore (US$ 68.64 million) on 10 selected highway stretches. This initiative aims to evaluate the feasibility of green hydrogen supply for commercial vehicles and establish standards for fuelling and storage systems.
*In February 3, 2026, The Ministry of Road Transport & Highways has proposed the construction of a 156.10 km four-lane greenfield highway from Rourkela to Sithiyo, spanning Odisha and Jharkhand. The corridor will traverse five districts and is strategically aligned to connect PM GatiShakti economic nodes, including a seafood cluster and a Special Economic Zone (SEZ).
Higher
Investments
* In 2026–27, an allocation of Rs. 1,21,999 crore (US$ 13.6 billion) has been made towards roads and bridges under the Ministry of Road Transport and Highways, marking a 5% increase over the revised estimate for 2025–26. The expenditure covers key areas such as the development of national highways, expressway projects, lane expansion under various programmes, and enhancing road connectivity in left-wing extremism-affected regions, reflecting the government’s continued focus on strengthening transport infrastructure.
Policy
Support
*As of June 5, 2025, the Bhoomi Rashi Portal (Land Acquisition Portal) has incorporated 3,427 online projects of the National Highways Authority of India (NHAI).
*100% Foreign Direct Investment (FDI) is allowed under the automatic route in the road and highways sector, subject to applicable laws and regulation.
*Under the Pradhan Mantri Gram Sadak Yojana (PMGSY), the target of connecting all habitations with population above prescribed thresholds has been met, leading to improved rural connectivity and socio-economic transformation in rural areas. The government is also developing 35 multimodal logistics parks as part of Bharatmala Pariyojana with an investment of about Rs. 46,000 crore (US$ 5.21 billion) to handle around 700 million metric tonnes of cargo.
Reliance Infrastructure Limited (RInfra)
Reliance Infrastructure Limited (RInfra) is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as power, roads, metro rail and airport in the infrastructure space and the defence sector. The company is also a leading utility company with presence across the chain of power businesses such as generation, transmission, distribution, and power trading. RInfra, through its SPVs, has executed a portfolio of infrastructure projects under BOT such as a metro rail project in Mumbai and eleven road projects with total length of about 1,000 kms. RInfra, along with its wholly owned subsidiary company, has installed capacity of 441 MW of power and distributes power to over 40 lakh consumers in Delhi. RInfra also provides Engineering, Procurement, and Construction (EPC) services for developing power infrastructure and road projects.
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GMR Infrastructure Limited
GMR Infrastructure Limited (GIL) is engaged in generation of power, mining and exploration activities, development of highways, infrastructure development, such as development and maintenance of airports and special economic zone; construction business, including Engineering, Procurement and Construction (EPC) contracting activities and operation of airports and special economic zones. Its airports segment is engaged in the development and operation of airports. Its power segment is engaged in generation of power and provision of related services and exploration and mining activities. The roads segment is engaged in the development and operation of roadways. The EPC segment is engaged in handling of engineering, procurement, and construction solution in the infrastructure sector. The others segment is engaged in urban infrastructure and other activities.
Read MoreIRB Infrastructure Developers Limited
IRB Infrastructure Developers Limited is a road BOT operator. The company's principal activity is the construction and maintenance of roads. Its business segments include road infrastructure projects, which includes development and operation of roadways; real estate, which includes real estate development; and others, which includes windmill (sale of electricity generated by windmill), hospitality and airport infrastructure. Its construction business complements its BOT vertical by executing engineering, procurement and construction, and O&M aspects of BOT concessions. It has a portfolio of over 20 road BOT projects. It has in-house integrated project execution capabilities in both its business verticals, including construction and O&M of highways. Its clients include government agencies such as National Highways Authority of India (NHAI) and state road development authorities, which develop highways.
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MOREIndian Roads
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