India’s infrastructure sector witnessed remarkable growth in the financial year ending March 31, with highway construction surpassing 10,500 km and toll revenue crossing an unprecedented Rs 60,000 crore.
This milestone underscores the government’s aggressive push towards enhancing connectivity, driving economic growth, and supporting the nation’s transition to sustainable transport solutions. While the toll revenue achieved in the last fiscal year represents the highest ever in the history of India’s highway sector, the pace of highway construction was the third-highest in the last five years. According to officials, the decline in construction compared to the previous year was primarily due to a slowdown in the bidding process for new highway projects. This trend is expected to persist in the coming years, influenced by changing project dynamics and the evolving policy landscape. In the previous fiscal year, the total highway construction stood at 12,349 km, with toll collections reaching approximately Rs 55,000 crore. This indicates a significant growth trajectory, reflecting the government’s focus on improving road infrastructure to boost economic activities and reduce travel time. However, the reduced pace in 2024-25 has raised questions about the long-term sustainability of the current growth momentum.
Meanwhile, the Indian Railways also set new benchmarks, registering its highest-ever earnings of Rs 2.7 lakh crore during the fiscal year. This surge was driven by record freight movement, which crossed 1,617 million tonnes (MTs), and a substantial increase in passenger traffic, which rose by 6% compared to the previous year. These figures highlight the critical role of railways in supporting India’s economic engine, with freight revenue alone contributing Rs 1.75 lakh crore. Officials noted that the freight revenue growth was supported by the operation of 44,408 additional goods trains and the induction of 41,929 new wagons into the railway network. This expansion not only enhanced cargo handling capacity but also contributed to the government’s goal of reducing the carbon footprint of the transport sector. The increased focus on freight movement aligns with India’s broader strategy to shift more goods from road to rail, promoting eco-friendly logistics.
In the passenger segment, the railways generated around Rs 75,500 crore in fare revenue, up from Rs 70,693 crore in the previous fiscal year. The rise in passenger revenue reflects both increased travel demand and the government’s continued investment in upgrading railway services. To meet the growing demand, the railways manufactured 7,133 new coaches last year, including 4,601 non-AC coaches and 2,533 AC coaches. This effort underscores the commitment to providing affordable and accessible transport options, particularly for low and middle-income groups. The focus on manufacturing non-AC coaches highlights an inclusive approach, ensuring that rail travel remains affordable for the broader population. The increase in AC coach production also caters to the rising demand from middle-class passengers seeking more comfortable travel options. This dual focus on affordability and comfort is indicative of the railways’ efforts to create a more equitable transport ecosystem.
The record-breaking achievements in both highway construction and railway operations underscore the government’s ambitious infrastructure agenda. However, these developments also raise important questions about sustainability and environmental impact. While increased construction and transport activities drive economic growth, they also contribute to carbon emissions and resource depletion. In this context, the government’s commitment to zero-carbon and eco-friendly infrastructure becomes critical. The integration of sustainable practices in highway development, such as the use of recycled materials, energy-efficient construction techniques, and eco-friendly transport technologies, will be key to ensuring that growth does not come at the expense of environmental degradation. Similarly, the railways’ efforts to modernise their fleet with energy-efficient locomotives and the promotion of green logistics solutions are steps in the right direction. The focus on freight movement through rail, which has a lower carbon footprint compared to road transport, aligns with India’s broader climate goals.
As India continues to invest in infrastructure development, the challenge lies in balancing rapid growth with sustainability. The current achievements reflect a strong foundation, but future growth will depend on the ability to integrate green technologies, promote inclusive transport systems, and ensure equitable access to infrastructure benefits. The government’s ongoing efforts to enhance highway and railway networks are not just about connecting cities and towns; they are about shaping the future of India’s urban and rural landscapes. With a focus on sustainable development, gender-neutral policies, and equitable access, these infrastructure milestones represent a step towards building smarter, greener, and more resilient cities across the country.
India Highway Construction Hits 10500 km in Record Year
