The Road Ahead

28 Jun 2021 CW Team

India has the second largest road network in the world, spanning an estimated 6.4 million km. Highway construction in the country increased at a 17-per-cent CAGR between FY2016 and FY2021. Despite the pandemic and lockdowns, the Ministry of Road Transport and Highways (MoRTH) exceeded the target for FY2021 and constructed 13,298 km of National Highways last fiscal, as per an IBEF report. Further, the plan is to construct 40 km of highways every day in the current year, beating its daily record of 37 km per day from 2019-20.

Increased investments

Roads have been a key focus area for budget allocations over the years. A total of 200,000 km of National Highways is expected to be completed by 2022.

The Government of India has allocated Rs 111 trillion (US$ 1.4 trillion) under the National Infrastructure Pipeline (NIP) for FY2019-25. Of this, the roads sector is likely to account for 18 per cent capital expenditure. Under the Bharatmala Pariyojana Phase-I A, a total length of 34,800 km road projects has been proposed to be constructed with an estimated outlay of Rs 5.35 trillion ($ 74.15 billion).

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