India’s national highway development programme, long seen as a cornerstone of the country’s infrastructure ambitions, is witnessing its sharpest deceleration in nearly a decade.
With just 4,874 kilometres of highways awarded and 8,330 kilometres constructed until February in the financial year 2024-25, the sector appears to be struggling to maintain its previous pace. If March does not deliver a significant uptick, as occasionally witnessed in past years, this fiscal year could record the slowest growth in highway construction since 2017-18 and the weakest award tally since 2018-19. The numbers are particularly sobering for a sector that has consistently underpinned economic activity, supported logistics and freight movement, and facilitated better connectivity to remote areas. Compared to last year’s figures for the same 11-month period, there is a marginal increase in construction — from 7,497 km to 8,330 km — but project awards have remained nearly flat. However, these figures pale in comparison to earlier targets and expectations, especially in light of the Union government’s consistent push for rapid infrastructure buildout under the Bharatmala Pariyojana and other road development initiatives.
The sharp deceleration also spells concerns over daily construction rates. While India previously boasted an average daily highway construction rate of over 30 kilometres per day at its peak, this year’s trajectory indicates a return to suboptimal levels. Per day construction is a key performance indicator, and its dip may trigger concern among contractors, investors, and planners in the infrastructure ecosystem. With awards and execution intrinsically linked — one feeding the pipeline for the other — this dual slump could disrupt forward planning and resource mobilisation in the sector.
Government officials maintain that the final tally for March is yet to be fully captured and could provide a more favourable outlook. Typically, March sees a surge in activity due to year-end pushes, but even with that possibility, it is unlikely that the final numbers will bring performance anywhere close to the more ambitious benchmarks set in the past. Additionally, policy changes, cost escalations, land acquisition hurdles, and delays in environmental clearances are among the factors often cited by stakeholders as reasons behind the slowdown.
The wider implications of this slump are not just economic but also social and environmental. Fewer highway projects directly impact the potential shift towards greener and more efficient transportation systems. A well-connected national road network is essential for reducing fossil fuel consumption through smoother logistics and optimised freight corridors. Without continued progress, the momentum toward sustainable mobility and economic equity — particularly in underdeveloped regions — risks being compromised.
As India positions itself as a global investment destination and continues its commitment to sustainable and inclusive development, ensuring that infrastructure growth does not lose steam will be crucial. Timely approvals, predictable policies, and faster execution mechanisms will be vital to bring the sector back on track. Whether FY26 manages to reverse this downward trend will depend not only on funding and institutional resolve but also on recalibrating priorities in line with the changing socio-economic landscape.
Indias highway construction slows down to lowest pace in past ten years
