India has the second-largest road network in the world, spanning a total of 6.7 million kilometres (kms).
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 road transport infrastructure projects. The Government’s policy to increase private sector participation has proved to be a boon for the infrastructure industry with many private players entering the business through the Public-Private Partnership (PPP) model. As of Feb 2025, there were 826 road projects PPP out of 1825 total projects in India. In a significant effort to enhance infrastructure, the Union government approved eight national high-speed corridor projects, involving the construction of 936 kilometres of highways at a total cost of Rs. 50,655 crore (US$ 6.09 billion).
As of December 2024, India has a total of 146,195 kilometres of National Highway and 2,474 National high-speed corridors.
The government has also committed to develop 27 greenfield corridors comprising expressways and access-controlled highways, spanning 9860 Kms over the next few years. This is in line with the government’s masterplan 2047 and making logistics more efficient.
With the Government permitting 100% Foreign Direct Investment (FDI) in the road sector, several foreign companies have formed partnerships with Indian players to capitalise on the sector's growth. FDI inflows in construction development stood at Rs. 2,50,628 crore (US$ 35.24 billion) between April 2000-September 2024. The Government’s move to cut GST rates on construction equipment from 28% to 18% is expected to give boost to the industry.
In FY25 (Until December), the total passenger vehicle sales reached 31,39,288.
According to a report by SBI Capital Markets, Fastag collections on national highways for the financial year FY25 are projected to reach approximately Rs. 72,500 crore (US$ 8.63 billion), reflecting slower-than-expected traffic growth in H1 FY25 and a modest rise in toll fees.
National Highways Authority of India (NHAI) spent a record-breaking Rs. 2,07,000 crore (US$ 24.79 billion) on the construction of national highways in the FY24. This was the highest capital expenditure ever recorded, representing a 20% increase from last year.
Under the Union Budget 2025-26, the government has allocated Rs. 2,87,333.3 crore (US$ 33.07 billion) to the Ministry of Road Transport and Highways, reflecting a modest increase of 2.41% compared to the FY25.
In the Union Budget 2025-26, the government proposed to increase allocation for capital expenditure to Rs. 11.21 lakh crore (US$ 129.0 billion), up 10.1% from revised budget estimate of Rs. 10.18 lakh crore (US$ 117.2 billion) in FY25.
In January 2025, Prime Minister Narendra Mr. Narendra Modi took a significant step to enhance India's metro network by launching several development projects worth over Rs. 12,200 crore (US$ 1.43 billion) in Delhi.
The government has established a provisional target of constructing 10,421 km of national highways in FY25, reflecting a 15% decrease from last year's achievement due to delays in state clearances caused by the extended election process.
In FY25 (up to December), the Ministry of Road Transport and National Highways awarded a total length of 3,100 kms.
Ceigall India has been awarded for the development of a 25.24 km, six-lane greenfield bypass in southern Ludhiana, a key component of the Ludhiana-Ajmer economic corridor, to be implemented under the hybrid annuity model (HAM) in Punjab.
In FY24 approximately 12,300 km of National Highways were constructed.
In June 2024, NHAI Partners with IIIT Delhi to Improve Road safety through the implementation of Artificial Intelligence.
On January 19, 2024, an event held at Joshimath-Malari Road in Uttarakhand showcased 35 infrastructure projects by the Border Roads Organisation (BRO), constructed at a total cost of Rs. 670 crore (US$ 80.36 million).
To improve commuting experience on National Highways, NHAI will develop Wayside Amenities (WSA) at more than 600 locations on National Highways and Expressways by FY25. Wayside Amenities will be developed every 40-60 km of current and upcoming National Highways and Expressways.
As of July 2023, there were 202 national highway projects totalling Rs. 79,789 crore (US$ 9.59 billion) in progress in the country, covering a length of 6,270 km.
NHAI is working towards development of around 10,000 km of Optic Fibre Cables (OFC) infrastructure across the country by FY25. National Highways Logistics Management Limited (NHLML) will implement the network of Digital Highways by developing integrated utility corridors along the National Highways to develop OFC infrastructure.
In March 2024, Prime Minister Mr. Narendra Modi inaugurated and laid the foundation stone for 112 national highway projects across various states, with a total worth of approximately US$ 12.04 billion (Rs. 1 lakh crore).
The country's first elevated eight-lane access control Dwarka expressway of 29.6 km length is built at a cost of Rs. 1 lakh crore (US$ 12.04 billion) and inaugurated in March 2024.
National Highways Infra Trust (NHIT) raised Rs. 16,000 crore (US$ 1.92 billion) in InvIT round- 3, stretches aggregate length of 889 kilometres of national highways, marking the largest transaction by the National Highways Authority of India (NHAI).
In August 2023, the National Highways Authority of India (NHAI) made a big step towards improving the highway user experience, with the introduction of 'Rajmargyatra,' a citizen-centric unified mobile application. This user-friendly app provides travellers with in-depth knowledge of Indian National Highways as well as an effective procedure for filing complaints.
In July 2023, Prime Minister Mr. Narendra Modi dedicated a six-lane greenfield motorway part of the Amritsar-Jamnagar Economic Corridor and the first phase of the Inter-State Transmission Line for Green Energy Corridor.
Increasing the pace of development of Uttar Pradesh, the Union Minister for Road, Transport and Highways, Mr. Nitin Gadkari inaugurated two National Highway projects with an investment of more than Rs. 3,300 crore (US$ 396.8 million) in Lucknow on July 17, 2023.
In June 2023, National Highways Authority of India (NHAI) introduced a ‘Knowledge Sharing’ platform for sharing of knowledge and innovative best practices. This effort, which is hosted on the NHAI website, will assist the authority in working with specialists and citizens who want to exchange knowledge and views about subjects including road design, construction, road safety, environmental sustainability, and related sectors. The platform will promote the exchange of best practices from all around the world and work to strengthen the nation's national highway system.
Union Minister for Road Transport and Highways, Mr. Nitin Gadkari. expressed confidence that India's road infrastructure would soon exceed that of the United States, citing the economic advantages of well-developed transport networks. He also mentioned receiving 360 proposals for ropeway and cable car projects valued at approximately US$ 7.93 billion. He encouraged international collaboration on over 300 tunnel projects, aiming to keep costs manageable given India's low per capita income.
In Andhra Pradesh, 70 projects underway, totalling 2,014 kms and costing Rs. 33,540 crore (US$ 4.09 billion) are currently in progress.
In March 2023, NHAI has invited bid to help in developing Wayside Amenities at more than 600 locations on National Highways and Expressways by FY25.
In February 2023, Mr. Nitin Gadkari has approved the development of 32 km long 6-lane Access Controlled Greenfield Highway on NH-544G Bengaluru–Vijayawada Economic Corridor in Hybrid Annuity Mode in Andhra Pradesh worth US$ 157 million (Rs. 1,292.65 crores).
As of March 2022, the government plans to spend Rs. 10,565 crore (US$ 1.38 billion) on the Trans-Arunachal Highway and Kaladan Multi-Model Transport Project, as well as other roads development projects such as capital connectivity, district connectivity, connectivity to the international border, and improvement and strengthening of roads in the region of Sikkim.
Under Pradhan Mantri Gram Sadak Yojana (PMGSY), in the UT of Jammu & Kashmir, 3,261 roads of length of 19,277 kms and 243 bridges have been sanctioned, out of which 1858 roads of length 11,517 kms and 84 bridges have been completed. Similarly, in the UT of Ladakh, 142 roads of length of 1207 kms and 3 bridges have been sanctioned, out of which 96 roads of length 699 kms and 2 bridges have been completed until July 2020. As of December 19, 2023, a total of 749,639 km of road length has been constructed under PMGSY.
In October 2023, rating agency Crisil said that the Assets Under Management (AUM) for Infrastructure Investment Trusts (InvITs) in India's road sector will nearly double by March 2025 from the current Rs. 1.4 trillion (US$ 17 billion).
The Indian government launched Gati Shakti-National Master Plan, which will help lead a holistic and integrated development of infrastructure generating immense employment opportunities in the country.
CareEdge Ratings estimates that India will require additional infrastructure investment of US$ 18-20 trillion in the next 25 years to become a US$ 25-30 trillion economy by 2047.
PM Gati Shakti has assessed over 208 major infrastructure projects valued at more than US$ 180 billion, addressing 156 critical gaps in infrastructure, particularly in last-mile connectivity for sectors like coal, steel, fertilizers, and food distribution.
India’s Gati Shakti program has consolidated a list of 81 high impact projects, out of which road infrastructure projects were the top priority. The major highway projects include the Delhi-Mumbai expressway (1,350 kilometres), Amritsar-Jamnagar expressway (1,257 kilometres) and Saharanpur-Dehradun expressway (210 kilometres). The main aim of this program is a faster approval process which can be done through the Gati shakti portal and digitized the approval process completely.
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, ^ - FDI in construction development Includes: Townships, housing, built-up infrastructure and construction-development projects
