India To Spend Rs 11 Trillion On High-Speed Roads
ROADS & HIGHWAYS

India To Spend Rs 11 Trillion On High-Speed Roads

India is set to expand its high-speed road network nearly fivefold over the next decade with a planned investment of Rs 11 trillion (USD 125 billion) aimed at slashing logistics costs and modernising national infrastructure, according to sources familiar with the initiative.
The government plans to add 17,000 km of access-controlled expressways by 2033, significantly enhancing the current network of high-speed roads that presently covers only 4,500 km out of the 146,000 km national highway system. These new roads will support speeds of up to 120 km per hour, providing faster, safer, and more efficient movement compared to traditional highways.
Of the total proposed network, around 40 per cent is already under construction and is targeted for completion by 2030. Construction of the remaining corridors is expected to begin by 2028 and finish by 2033. The move aligns with global infrastructure trends, as seen in countries like China, which has over 180,000 km of expressways, and the United States, which maintains more than 75,000 km of interstate highways.
Financing Models to Attract Private Capital
India’s expressway initiative, though smaller in scale globally, is notable for its aggressive timeline and hybrid financing structure designed to incentivise private investment. Projects with expected returns above 15 per cent will be awarded under the Build-Operate-Transfer (BOT) model, enabling private companies to recoup investments via toll collection.
Lower-return corridors will follow the Hybrid Annuity Model (HAM), wherein the government provides 40 per cent of construction costs upfront, reducing initial risk for private developers. Most of the under-construction expressways currently fall under this model, though the government now seeks greater private participation going forward.
Record Investment and Growing Interest
The National Highways Authority of India (NHAI), which is spearheading the initiative, recorded capital expenditure of Rs 2.5 trillion in the fiscal year ending March 2025—a 21 per cent rise from the previous year. For FY26, the government has increased road and highway allocations to Rs 2.9 trillion.
Despite recent lukewarm private sector interest in the road sector, India’s broader infrastructure space has continued to attract major institutional investors. Entities like Brookfield Asset Management, Blackstone Inc., Macquarie Group, and Canada Pension Plan Investment Board have already committed significant funds. The Adani Group alone has announced plans to invest USD 18.4 billion across infrastructure, including roads.
Analysts at Deloitte India project that the country could see hundreds of billions of dollars in infrastructure investment over the next three years, propelled by favourable policies, rising demand, and the large scale of government-led infrastructure projects.

India is set to expand its high-speed road network nearly fivefold over the next decade with a planned investment of Rs 11 trillion (USD 125 billion) aimed at slashing logistics costs and modernising national infrastructure, according to sources familiar with the initiative.The government plans to add 17,000 km of access-controlled expressways by 2033, significantly enhancing the current network of high-speed roads that presently covers only 4,500 km out of the 146,000 km national highway system. These new roads will support speeds of up to 120 km per hour, providing faster, safer, and more efficient movement compared to traditional highways.Of the total proposed network, around 40 per cent is already under construction and is targeted for completion by 2030. Construction of the remaining corridors is expected to begin by 2028 and finish by 2033. The move aligns with global infrastructure trends, as seen in countries like China, which has over 180,000 km of expressways, and the United States, which maintains more than 75,000 km of interstate highways.Financing Models to Attract Private CapitalIndia’s expressway initiative, though smaller in scale globally, is notable for its aggressive timeline and hybrid financing structure designed to incentivise private investment. Projects with expected returns above 15 per cent will be awarded under the Build-Operate-Transfer (BOT) model, enabling private companies to recoup investments via toll collection.Lower-return corridors will follow the Hybrid Annuity Model (HAM), wherein the government provides 40 per cent of construction costs upfront, reducing initial risk for private developers. Most of the under-construction expressways currently fall under this model, though the government now seeks greater private participation going forward.Record Investment and Growing InterestThe National Highways Authority of India (NHAI), which is spearheading the initiative, recorded capital expenditure of Rs 2.5 trillion in the fiscal year ending March 2025—a 21 per cent rise from the previous year. For FY26, the government has increased road and highway allocations to Rs 2.9 trillion.Despite recent lukewarm private sector interest in the road sector, India’s broader infrastructure space has continued to attract major institutional investors. Entities like Brookfield Asset Management, Blackstone Inc., Macquarie Group, and Canada Pension Plan Investment Board have already committed significant funds. The Adani Group alone has announced plans to invest USD 18.4 billion across infrastructure, including roads. Analysts at Deloitte India project that the country could see hundreds of billions of dollars in infrastructure investment over the next three years, propelled by favourable policies, rising demand, and the large scale of government-led infrastructure projects.

Next Story
Infrastructure Urban

Mount Invests Rs 250 Cr, Adds PUF & PEB Plants, 400+ Jobs

TUMKUR, Karnataka, January 8, 2025 - Mount Roofing & Structures Private Limited, one of India's  fastest-growing manufacturers in PUF and a leading solutions provider across Pre-Engineered Building  (PEB) and Polycarbonate sheets, simultaneously inaugurated its second fully automated continuous  Sandwich Panel manufacturing line and a new PEB manufacturing plant at its integrated campus in  Tumkur." The milestone expansion, part of a total investment of INR 250 crores, marks a significant  advancement in the company's commitment to engineered performance, manu..

Next Story
Infrastructure Urban

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Next Story
Infrastructure Urban

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App