The central and state governments have announced a combined investment of Rs 3.9 lakh crore for the financial year 2024-25 (FY25). This investment marks a key step in the country’s long-term strategy to improve connectivity, streamline logistics, and drive economic growth.
The announcement comes in the wake of rising demand for robust transport networks to support industries and ensure smoother freight movement across the nation. The central government’s contribution to this massive investment totals Rs 1.42 lakh crore, with a substantial portion directed towards the development of critical road infrastructure in several key states. Rajasthan, which will see the largest share of the central funds, is set to receive Rs 0.67 lakh crore to fund the construction of 28 flyovers aimed at easing traffic congestion and boosting road safety. Additionally, Assam is earmarked to receive Rs 0.5 lakh crore to build 1,647 km of roads, which will significantly improve connectivity in the northeastern region. Meghalaya’s road network is also set for an upgrade, with Rs 0.25 lakh crore allocated for the construction of 136 km of roads, enhancing accessibility for remote areas.
On the state front, an even more significant Rs 3.7 lakh crore will be invested in road transport infrastructure, with a focus on projects that will create jobs, promote regional growth, and facilitate smoother economic exchanges. Gujarat is leading the charge among the states, with Rs 97,892 crore allocated to improve its road network. Rajasthan follows with Rs 87,438 crore, which will go towards constructing more than 2,800 km of roads. Odisha has also announced its share of Rs 27,400 crore for road projects aimed at enhancing the state’s transport infrastructure.
These road development efforts are part of a broader push for infrastructure growth that was highlighted in the Union Budget for FY25, which set aside Rs 11.1 lakh crore for public sector capital expenditure. This large-scale investment underscores the growing recognition of the vital role that road networks play in the nation’s economic prosperity and competitiveness. In fact, the government’s investments in roads are aimed not just at improving urban and rural mobility but also at reducing logistics costs, which is seen as a key factor in making India a global manufacturing hub.
Alongside the public sector contributions, private sector investments are also playing a crucial role in the nation’s infrastructure projects. According to recent reports, the total value of new investments announced for FY25 stands at Rs 38.3 lakh crore, with the private sector contributing 69% of this amount. Domestic companies are leading the charge, particularly in the renewable energy sector, as well as in conventional energy, chemicals, and steel. This influx of private capital, coupled with robust public sector investments, is expected to generate significant economic activity and foster job creation across the country.
Ultimately, the combined efforts of the central and state governments, along with the active involvement of private enterprises, are set to transform India’s transport networks. These investments not only promise to improve connectivity and logistics but are also crucial for driving long-term economic growth, reducing environmental impact, and building sustainable infrastructure that can withstand the demands of an ever-growing economy. As these projects unfold, they will undoubtedly play a pivotal role in shaping the future of India’s urban and rural landscapes, ensuring a more connected, resilient, and prosperous nation.
Government to Boost Road Infrastructure with Rs 3.9 Lakh Crore
