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

Road Infrastructure in India

Latest update: October, 2018

Growth

 

 

Last Updated: November, 2018

Introduction

India has the one of largest road network across the world, spanning over a total of 5.5 million km. This road network transports 64.5 per cent of all goods in the country and 90 per cent of India’s total passenger traffic uses road network to commute. Road transportation has gradually increased over the years with the improvement in connectivity between cities, towns and villages in the country.

The Indian roads carry almost 90 per cent of the country’s passenger traffic. In India sales of automobiles and movement of freight by roads is growing at a rapid rate.

Market size

The construction of highways reached 9,829 km during FY18 which was constructed at an average of 26.93 km per day.

Total length of roads constructed under Prime Minister’s Gram Sadak Yojana (PMGSY) was 47,447 km in 2017-18.

Key Investments/Developments

The Union Minister of State for Road, Transport and Shipping has stated that the Government aims to boost corporate investment in roads and shipping sector, along with introducing business-friendly strategies that will balance profitability with effective project execution. According to data released by the Department of Industrial Policy and Promotion (DIPP), construction development including Townships, housing, built-up infrastructure and construction-development projects attracted Foreign Direct Investment (FDI) worth US$ 24.87 billion between April 2000 and June 2018.

Some of the key investments and developments in the Indian roads sector are as follows: 

  • A total of 892 km and 2,345 km national highway projects were awarded and constructed, respectively between April – August 2018.
  • The first phase of construction work of Mumbai's 29.2 km long coastal road is expected to begin in May 2018, after bids are finalised in March.

Government Initiatives

Some of the recent government initiatives are as follows:

  • As of August 2018, a total length of 34,800 km road projects have been proposed to be constructed, under Bharatmala Pariyojana Phase-I.
  • As of August 2018, Government of India has approved highway projects worth Rs 2 billion (US$ 29.83 million) to improve connectivity among Gujarat, Maharashtra, Rajasthan, Madhya Pradesh and Diu.
  • 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).
  • In May 2018, IIFCL Mutual Fund launched infrastructure debt fund (IDF) scheme with Corporation Bank, Oriental Bank of Commerce & IIFCL as investors and Canara Bank & HUDCO as strategic investors.
  • In May 2018, the Government of India approved construction of a 9.9 km 6 lane bridge project across Ganga in Uttar Pradesh on NH-36 with the total capital cost of Rs 1,948.25 crore (US$ 302.29 million). The construction of the project is expected to be completed by December 2021.
  • 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.

Road Ahead

The government, through a series of initiatives, is working on policies to attract significant investor interest. A total of 200,000 km national highways are expected to be completed by 2022.

The Ministry of Road Transport and Highways has fixed an overall target to award 15,000 km projects and construction of 10,000 km national highways in FY19. A total of about 295 major projects including bridges and roads are expected to be completed during the same period.

The Government of India has decided to invest Rs 7 trillion (US$ 107.82 billion) for construction of new roads and highways over the next five years.

Exchange Rate Used: INR 1 = US$ 0.0149 as on Q1 FY19.

References: Media Reports, Press Releases, Ministry of Road Transport and Highways, NHAI website, Press Information Bureau (PIB)

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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