Trade Analytics
Road
The Government of India aims to complete 200,000 km national highways by 2022.

Road and Infrastructure Industry Analysis

Latest update: July, 2019

Growth

 

 

Last Updated: July, 2019

India has second largest road networks in the world, spanning a total of 5.5 million kilometres (kms).

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.

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. Cumulative FDI in construction development^ since April 2000 stood at US$ 25.05 billion as of March 2019. 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). As of November 2018, total length of projects awarded under Bharatmala Pariyojana (including residual NHDP works) was 6,460 kms for a total cost of Rs 1.52 trillion (US$ 21.07 billion). The total amount of investments* are estimated to reach Rs 1.58 trillion (US$ 2.25 billion) in FY19.

The Ministry of Road Transport and Highways has fixed a target for construction of 10,000 km national highways in FY19. The length of national highways constructed reached 6,715 km at a pace of 24.42 kms per day between April-December 2018. The Government of India aims to construct 65,000 km of national highways at the cost of Rs 5.35 lakh crore (US$ 741.51 billion) by 2022. In the coming years, NHAI’s increased delegation autonomy along with Bharatmala Pariyojana initiative is expected to enable growth in awarding momentum.^

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, ^ - Crisil Research

Indian Road Industry Report (July, 2019)
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