Trade Analytics
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: April, 2018

  • As of April 2018, there were 1,529 PPP projects in India, of which 740 were related to roads.
  • Project awarded under BOT is 17.92 per cent of the total awarded projects as of April 2018

 

 

 

 

 

Growth

Source: MoRTH, Aranca Research

Last Updated: April, 2018

India has one of the largest road networks in the world, spanning a total of 5.6 million kilometres (kms). Roads in India transport over 60 per cent of all goods and 85 per cent of total passenger traffic.

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.

The planned outlay under the Union Budget 2018-19 for the road sector is Rs 1.21 lakh crore (US$ 18.69 billion). Moreover, Rs 71,000 crore (US$ 10.97 billion) have been allocated specifically for the development for the national highways in the country.

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. In April 2018, the Government of India signed a US$ 210 million deal with World Bank to improve rural roads at a stretch of 10,510 km in Madhya Pradesh under the Gram Sadak Yojana programme.

The Ministry of Road Transport and Highways, has fixed a target of 20,000 kms for 2018-19 which is 25 per cent more than 17,055 kms awarded in 2017-18.

Sectoral Presentation (April, 2018)

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Previous Sectoral Presentation (April, 2017)

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