To modernise India’s core infrastructure, the central government has unveiled plans to invest an unprecedented Rs 10 lakh crore over the next two years to overhaul the country’s highway network.
The initiative will focus heavily on enhancing road infrastructure in the Northeastern states and border regions, with an ambition to raise road quality standards to levels comparable with those in the United States. This substantial infrastructure pivot comes as part of a broader strategy to fortify national connectivity, accelerate regional development, and future-proof transportation corridors.
This announcement signals a paradigm shift in India’s infrastructure policy, particularly in its long-neglected Northeastern belt. Of the total allocation, projects worth over Rs 1 lakh crore are earmarked exclusively for the Northeastern states, excluding Assam. Cumulatively, the region is expected to witness an infrastructural renaissance, correcting decades of underinvestment and logistical disconnect. The investment thrust includes 784 highway projects valued at Rs 3.73 lakh crore, covering more than 21,000 kilometres across Eastern India. These projects are being implemented through a consortium of central agencies including the Ministry of Road Transport and Highways, the National Highways Authority of India (NHAI), and the National Highways and Infrastructure Development Corporation Ltd (NHIDCL).
Specific figures lend weight to the Centre’s intent. Assam is witnessing Rs 57,696 crore worth of highway works, while Bihar and West Bengal have projects valued at Rs 90,000 crore and Rs 42,000 crore respectively. Additionally, Jharkhand and Odisha are each absorbing upwards of Rs 50,000 crore in road development funding. These investments not only boost connectivity but also promise to unlock local economies by improving access, reducing travel time, and enhancing logistical efficiencies.
The government’s confidence stems from its track record. The national highway network has seen a 60 percent expansion over the last decade—from 91,287 kilometres in 2014 to over 1.46 lakh kilometres presently. Furthermore, the quality of the highway network has improved markedly. The proportion of single-lane or sub-standard roads has declined from 30 percent to just 9 percent, marking a qualitative leap in road safety and durability.
A unique dimension of this infrastructure renewal is the emphasis on sustainability and innovation. A pilot project in Nagpur featuring a 135-seater bus powered by non-polluting energy sources is under trial. If successful, the model could be scaled up nationally, introducing cleaner, cost-effective mass transit alternatives on key routes like Delhi-Jaipur. This ties closely with the Centre’s twin objectives of reducing carbon emissions and providing equitable mobility infrastructure.
In the fiscal year 2024-25, the NHAI surpassed its target by constructing 5,614 km of highways, setting a new benchmark in execution capability. While challenges such as land acquisition, environmental clearances, and state coordination persist, the government’s focused fiscal and administrative push appears primed to redefine India’s infrastructure narrative. If executed as planned, this investment strategy could usher in a transformative era for India’s transportation economy, particularly for historically underserved regions like the Northeast, while laying the groundwork for more climate-resilient and inclusive urbanisation.
India to Invest Rs 10 Lakh Crore for Nationwide Highway and Northeast Upgrade
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