Road
India has the world's second largest road network.

Road and Infrastructure Industry Analysis

Latest update: October, 2018

Growth

 

 

Last Updated: October, 2018

India has second largest road networks in the world, spanning a total of 5.5 million kilometres (kms). Production of commercial vehicles increased to 894,551 in 2017-18 from 567,000 in 2009-10 at a CAGR of 5.87 per cent.

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. The total amount of investments* are estimated to reach Rs 1.58 trillion (US$ 2.25 billion) in FY19.

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. MAIF 2 became the first largest foreign investment in Indian roads sector under TOT mode worth Rs 9,681.5 crore (US$ 1.50 billion). 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. In May 2018, the Government of India signed US$ 500 million loan agreement with World Bank to provide additional funding for construction of 7,000 km climate resilient roads out of which 3,500 km will be built using green technologies under Pradhan Mantri Gram Sadak Yojna (PMGDY).

The Ministry of Road Transport and Highways has fixed a target for construction of 10,000 km national highways in FY19. The Government of India aims to complete 200,000 km national highways by 2022.

Note: TOT - toll operate transfer, * - investments include Budgetary support, IEBR refers to Internal and Extra Budgetary Resources and constitutes the resources raised by the public sector units through profits, loans and equity and Private sector investments; according to Ministry of Road Transport and Highways

Indian Road Industry Report (October, 2018)
Download PDF Download PDF  (Size: 1.11 MB )
Indian Road Industry Report (September, 2018)
Download PDF Download PDF  (Size: 1.11 MB )

Click to access the Road Industry Archived Report

Posters

Brand India Pharma

ROADS INDIA

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

India Now Magazine


Advantage GST Transforming Businesses Spurring Growth

English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_logo-ibef1.jpg INDIA-COLOMBIA TRADE: AIMING FOR NEW LANDMARKS!
IBEF, Knowledge Centre

India and Colombia’s diplomatic relations date back to the year 1959. Till today, the relations have only been growing stronger, friendlier and cordial with Colomb...

author_logo-ibef1.jpg ISRO: Flying high!
IBEF, Knowledge Centre

Indian Space Research Organization (ISRO) is counted amongst the top six Government space agencies in the world today. Its vision to 'harness space technology for national ...

author_logo-ibef1.jpg INDIA'S GOVERNMENT E-MARKETPLACE: MAKING PROCUREMENT SIMPLE!
IBEF, Knowledge Centre

The Government e-Marketplace (GeM) is a national public procurement platform in India that was launched about two years back, in August 2016. Till date, the platform cla...

author_logo-ibef1.jpg Indian Logistics Sector: Shining bright!
IBEF, Knowledge Centre

The Indian logistics sector is on a big growth tide. According to the domestic rating agency ICRA, Indian logistics sector is expected to grow at a rate 8-10 per cent ove...

author_logo-ibef1.jpg India's Franchise Industry: The road so far and way forward!
IBEF, Knowledge Centre

Whether you are in a big metropolitan city or a smaller town, one look around you is bound to reveal bright signage with recognisable names all around. From heading to th...

author_logo-ibef1.jpg India: Strong in Tractor Manufacturing
IBEF, Knowledge Centre

In India, agriculture and its allied sectors are the primary source of livelihood for a large chunk of domestic population. In 2017, the Gross Value Added (GVA) in these...

ideas More

Ideas

Darwinbox: Redefining HR
Darwinbox is a comprehensive and integrated Human Resource (HR) software that provides a one-stop solution to all the technical aspects of the HR department. From recruitment to performance management and to exit management, Darwinbox takes care of all the HR related needs across the employee life cycle including payroll,...

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password