Indian road construction faces 7-10% slowdown in FY25
ROADS & HIGHWAYS

Indian road construction faces 7-10% slowdown in FY25

Road construction in India is anticipated to experience a moderate slowdown of 7-10% in the fiscal year 2024-25, primarily due to challenges in execution, according to a report by CareEdge Ratings. This projection highlights the hurdles facing the infrastructure sector despite ongoing efforts to accelerate development and modernization.

Several factors contribute to the anticipated slowdown in road construction activities. One major challenge is the sluggish pace of project execution, resulting from bureaucratic delays, land acquisition issues, and regulatory hurdles. These bottlenecks hinder the timely completion of infrastructure projects, thereby impacting the overall growth trajectory of the sector.

Furthermore, the lingering effects of the COVID-19 pandemic continue to pose challenges for the road construction industry. Supply chain disruptions, labor shortages, and project financing constraints have impeded construction activities and delayed project timelines. The sector's recovery remains contingent upon effective measures to mitigate pandemic-related risks and uncertainties.

Additionally, the availability of adequate funding remains a pressing concern for infrastructure projects in India. Despite government initiatives to boost investment in the sector through public-private partnerships and innovative financing mechanisms, funding gaps persist, limiting the scale and pace of road construction activities.

The report underscores the need for concerted efforts to address the underlying challenges hindering the progress of road construction projects in India. Streamlining approval processes, expediting land acquisition procedures, and enhancing coordination among stakeholders are crucial steps to improve project execution efficiency and accelerate infrastructure development.

Moreover, leveraging technology and digital tools can enhance project monitoring and management, enabling real-time tracking of progress and facilitating timely decision-making. Embracing innovation and adopting best practices in project execution can enhance the sector's resilience and improve its capacity to meet infrastructure targets.

Despite the anticipated slowdown, the long-term outlook for road construction in India remains positive, driven by the government's continued focus on infrastructure development and economic growth. Investments in road connectivity and transportation infrastructure are essential for fostering regional development, enhancing connectivity, and promoting economic activity across the country.

In conclusion, while road construction in India is expected to witness a slowdown in the fiscal year 2024-25, overcoming execution challenges and addressing funding constraints are critical for sustaining momentum and achieving long-term infrastructure goals. By prioritizing reforms, promoting innovation, and fostering collaboration, India can unlock the full potential of its infrastructure sector and pave the way for inclusive growth and sustainable development.

Road construction in India is anticipated to experience a moderate slowdown of 7-10% in the fiscal year 2024-25, primarily due to challenges in execution, according to a report by CareEdge Ratings. This projection highlights the hurdles facing the infrastructure sector despite ongoing efforts to accelerate development and modernization. Several factors contribute to the anticipated slowdown in road construction activities. One major challenge is the sluggish pace of project execution, resulting from bureaucratic delays, land acquisition issues, and regulatory hurdles. These bottlenecks hinder the timely completion of infrastructure projects, thereby impacting the overall growth trajectory of the sector. Furthermore, the lingering effects of the COVID-19 pandemic continue to pose challenges for the road construction industry. Supply chain disruptions, labor shortages, and project financing constraints have impeded construction activities and delayed project timelines. The sector's recovery remains contingent upon effective measures to mitigate pandemic-related risks and uncertainties. Additionally, the availability of adequate funding remains a pressing concern for infrastructure projects in India. Despite government initiatives to boost investment in the sector through public-private partnerships and innovative financing mechanisms, funding gaps persist, limiting the scale and pace of road construction activities. The report underscores the need for concerted efforts to address the underlying challenges hindering the progress of road construction projects in India. Streamlining approval processes, expediting land acquisition procedures, and enhancing coordination among stakeholders are crucial steps to improve project execution efficiency and accelerate infrastructure development. Moreover, leveraging technology and digital tools can enhance project monitoring and management, enabling real-time tracking of progress and facilitating timely decision-making. Embracing innovation and adopting best practices in project execution can enhance the sector's resilience and improve its capacity to meet infrastructure targets. Despite the anticipated slowdown, the long-term outlook for road construction in India remains positive, driven by the government's continued focus on infrastructure development and economic growth. Investments in road connectivity and transportation infrastructure are essential for fostering regional development, enhancing connectivity, and promoting economic activity across the country. In conclusion, while road construction in India is expected to witness a slowdown in the fiscal year 2024-25, overcoming execution challenges and addressing funding constraints are critical for sustaining momentum and achieving long-term infrastructure goals. By prioritizing reforms, promoting innovation, and fostering collaboration, India can unlock the full potential of its infrastructure sector and pave the way for inclusive growth and sustainable development.

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?