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Market Reports

India’s Roads & Highways Sector

India’s Roads & Highways Sector

1

What are Roads & Highways?

2

India Roads & Highways Sector: Why Global Companies are Expanding into India?

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Why is the India Roads & Highways Sector Growing Rapidly?

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Government Initiatives Supporting the Roads & Highways Sector in India

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Emerging Opportunities across Key Roads & Highways Segments

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Opportunities for Foreign Companies Entering India’s Roads & Highways Sector

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Future Outlook of India Roads & Highways Sector

Overview

India’s road infrastructure in India forms the backbone of the country’s transport network, supporting rapid growth in the Indian road construction industry through large-scale highway construction in India and expressway development. Regulated and driven by the Ministry of Road Transport and Highways, the India Roads & Highways Market is strengthening India logistics infrastructure and India transport infrastructure, creating strong opportunities for global companies across construction, technology and investment.

What are Roads & Highways?

Roads and highways sector is a major component of the India transport infrastructure, and includes development, expansion, maintenance and modernization of the road network. India has the world’s largest road network, spanning over 6.62 million km as of August 2025, and serves as the backbone of the country’s transportation system, carrying more than 70% of freight and 85% of passenger traffic.

The continued expansion and modernization of road infrastructure in India is being supported by government investment, increasing freight movement, urbanization, industrial development and the growing need for efficient connectivity.

The Indian road construction industry covers the development, expansion, maintenance, and modernization of roads, national highways, expressways, bridges, tunnels and related infrastructure.

India Roads & Highways Sector: Why Global Companies are Expanding into India?

  • The India Roads & Highways Sector presents significant opportunities for global infrastructure companies, supported by large-scale public investment and the country’s growing logistics requirements. Programmes such as Bharatmala Pariyojana cover economic corridors, feeder roads, port connectivity and expressways, with Phase I targeting 24,800 km of development. The opportunity extends beyond traditional construction, with demand for advanced engineering, road-safety systems, intelligent transport solutions and sustainable technologies. For instance, the World Bank-supported Rajasthan Highway Modernization Project is upgrading around 800 km of highways while introducing digital systems for traffic management and road safety.

Why is the India Roads & Highways Sector Growing Rapidly?

  • Government Infrastructure Spending: Sustained government spending is driving highway expansion, expressways and rural roads. For FY 2026–27, INR 189.1 billion has been allocated for 26,474 km of rural roads under Pradhan Mantri Gram Sadak Yojana (PMGSY) and related initiatives.
  • Rising Freight & Logistics Demand: Growing manufacturing and trade are increasing the need for faster freight movement. The Delhi–Mumbai Expressway, for example, is expected to reduce travel time between the two cities from 33 to 12 hours, improving logistics efficiency. This development is also strengthening India logistics infrastructure, as improved road connectivity enables faster movement of goods between manufacturing centres, warehouses, ports and consumption markets.
  • Urbanization & Regional Connectivity: Rapid urban growth is creating demand for better links between cities, industrial hubs and surrounding regions. Projects such as the DND–Faridabad–Sohna corridor are strengthening connectivity across Delhi-NCR and improving access to major economic centres.

Government Initiatives Supporting Roads & Highways Sector

  • Bharatmala Pariyojana supports the development of economic corridors, expressways, port connectivity roads and feeder routes, with 20,378 km constructed by March 2025.
  • PM Gati Shakti National Master Plan promotes integrated infrastructure planning a across roads, railways, ports and other modes, helping improve first- and last-mile connectivity.
  • The National Infrastructure Pipeline (NIP) provides a long-term investment framework for large-scale infrastructure development, including transport projects.
  • The National Logistics Policy (NLP) complements physical infrastructure with digitalisation, process reforms and technology to create a more efficient and cost-effective logistics ecosystem.
  • The government is developing access-controlled expressways and high-speed corridors to reduce travel time, improve freight efficiency and connect major economic centres.
  1. 6-Lane Agra – Gwalior National High-Speed Corridor
  2. 4-Lane Kharagpur – Moregram National High-Speed Corridor
  3. 6-Lane Tharad – Deesa – Mehsana – Ahmedabad National High-Speed Corridor
  4. 4-lane Ayodhya Ring Road
  5. 4-Lane Section between Pathalgaon and Gumla of Raipur-Ranchi National High­speed Corridor
  6. 6-Lane Kanpur Ring Road
  7. 4-Lane Northern Guwahati Bypass and Widening/Improvement of Existing Guwahati Bypass
  8. 8-Lane Elevated Nashik Phata – Khed Corridor near Pune

Emerging Opportunities across Key Roads & Highways Segments

The development of road infrastructure in India is creating opportunities across highways, expressways, bridges, tunnels, urban roads, and smart mobility solutions. National Highways remain a major growth area, with the network reaching 1,46,572 km in March 2026, while four-lane-and-above highways have increased significantly, creating demand for construction, maintenance and advanced road technologies. Expressways and high-speed corridors offer particularly strong opportunities, with 5,580 km of National High-Speed Corridors currently under implementation. Urbanisation is also driving demand for ring roads, elevated corridors and intelligent traffic systems to reduce congestion. For example, the Nashik Phata–Khed elevated corridor is designed to improve access to Pune’s industrial hubs. Difficult terrain is further supporting tunnel development, as demonstrated by the Sonamarg Tunnel in Jammu & Kashmir.

Opportunities for Foreign Companies Entering India's Roads & Highways Sector

India’s expanding road infrastructure pipeline is creating opportunities for foreign companies across construction, technology and investment.

  • EPC contracting offers opportunities to participate in large highway, expressway and bridge projects, including projects approved under BOT and Hybrid Annuity models.
  • Smart highway technologies such as electronic tolling, traffic monitoring, road-safety systems and intelligent transport solutions can support India’s shift toward technology-enabled mobility.
  • Joint ventures with Indian infrastructure companies can help foreign firms combine international technology and expertise with local execution capabilities, regulatory knowledge and established relationships.
  • Acquisitions also provide a faster route to market by giving overseas companies access to established assets and operating capabilities. For example, France-based VINCI Highways agreed in 2026 to acquire nine Indian toll-road concessions spanning nearly 700 km, demonstrating the potential for international investment in India’s highway assets.

For any queries related to Market Entry and Business Consulting services, contact us to schedule a 15-minutes free Consultation.

Future Outlook of India Roads & Highways Sector

India’s roads and highways sector is expected to maintain strong growth, supported by sustained public investment and rising mobility needs. Continued government infrastructure spending is expected to drive highway expansion. For FY 2026–27, the Ministry of Road Transport and Highways has been allocated approximately Rs. 1220 million for roads and bridges, representing a 5% increase compared with the revised estimate for FY 2025–26. Rising freight and logistics demand will further strengthen the sector as improved road connectivity reduces travel times and supports manufacturing, trade and distribution. For example, the Delhi–Dehradun Economic Corridor has reduced travel time from over six hours to around 2.5 hours. Overall, India’s roads and highways sector is expected to grow steadily, creating new opportunities for foreign companies, technology providers, contractors, and investors.

Businesses with the right market strategy and compliance support can make the most of India’s growing market and build long-term success.

UJA Global Advisory provides end-to-end support for companies looking to enter India, set up operations, and meet regulatory requirements.

How UJA Supports Roads & Highways Businesses Entering India

UJA offers comprehensive advisory services tailored for Roads & Highways companies:

  • Market entry strategy and expansion planning
  • Regulatory and compliance advisory
  • Tax and transfer pricing services.
  • M&A and joint venture support
  • Accounting, audit and risk advisory

With 30+ years of experience and global presence (India, Japan, Europe), UJA enables seamless cross-border expansion.

Frequently Ask Questions

It includes the building, development, repair and maintenance of roads, highways, expressways, bridges and tunnels in India.

They improve connectivity, support trade and business, reduce travel time and help the movement of people and goods across the country.

Government spending, growing transport and logistics needs, urbanization, industrial growth, and increasing demand for better road connectivity drive the sector.

Through joint ventures, partnerships, technology collaborations, construction projects, investments, acquisitions, or by supplying road construction products and equipment. For example, France-based VINCI Highways entered India in 2026 by acquiring nine toll-road concessions spanning nearly 700 km, demonstrating how foreign companies can gain a strong market foothold through strategic acquisitions.

Yes, due to strong government investment, growing road infrastructure needs, increasing traffic and freight movement and opportunities for private and foreign companies.

Looking to explore opportunities in the India Roads & Highways Sector or expand your business in India? Partner with UJA Global Advisory for end-to-end support across market entry, regulatory compliance and strategic growth, ensuring a smooth and successful expansion journey.

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