India Roads and Highways Market, By Road Type (National/Interstate Highways, State Highways, Other), By Components (Road, Bridges/Tunnels/Culverts, Marking & Signage, Safety Equipment, Traffic Management System, Others), By Process (Maintenance, Expansion) By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

India Roads and Highways Market was valued at USD 152.16 Billion in 2024 and is expected to reach USD 266.60 Billion by 2030 with a CAGR of 9.63% during the forecast period. 

Roads and highways are core infrastructure that support mobility, freight movement, trade and regional connectivity, making them essential to economic development and logistics efficiency in India. Roads connect local and regional destinations, while highways are designed for faster, higher-capacity and longer-distance travel. As urbanization and freight demand increase, continued investment in these networks remains important for improving safety, easing congestion and strengthening connectivity.

India continues to prioritize large-scale transport infrastructure development. The government aims to construct 65,000 km of national highways at a planned cost of $64.17 billion. Union Minister for Road Transport and Highways Nitin Gadkari said more than 200 projects worth about $14.97 billion, or Rs 1.25 lakh crore, have been identified over the next five years under the National Ropeways Development Programme, Parvatmala Pariyojana.

Thirty-five multimodal logistics parks are planned under Bharatmala Pariyojana with a total investment of about $5.55 billion, and the network is expected to handle around 700 million metric tons of cargo. These projects reflect a broader push to improve freight efficiency, expand connectivity and build long-term infrastructure capacity across the country.

Key Market Drivers

Rising Urbanization and Population Growth

India's rapid urbanization and growing population have significantly increased demand for well-developed roads and highways. The country's urban population is projected to reach 600 million by 2030, leading to higher vehicular movement, congestion and the need for better road infrastructure.

Urban centers are expanding, and cities are integrating with surrounding suburban areas, requiring improved connectivity. The rise of smart cities under the Smart Cities Mission has further fueled demand for modern road networks, flyovers and expressways to support efficient transportation.

Higher disposable incomes and increasing vehicle ownership have driven a surge in private and commercial vehicle traffic. This trend has led to congestion on existing roads, pushing authorities to construct multi-lane highways, bypasses and ring roads. Increased industrialization and expansion of logistics hubs also require seamless road connectivity to transport goods efficiently. Demand for better infrastructure is particularly high in Tier 2 and Tier 3 cities, which are witnessing rapid development.

The government and private players are investing in metro connectivity, bus rapid transit systems and expressway projects to address urban mobility challenges. These developments are essential to accommodate India's expanding urban population while reducing congestion and travel time.

Growth of Logistics and E-Commerce Industry

The rise of India’s logistics and e-commerce sectors is becoming a major driver of road and highway infrastructure development, as faster freight movement, wider warehousing footprints, and stricter delivery timelines are increasing the need for stronger interstate and last-mile connectivity. Government reforms have already improved logistics efficiency, with the Ministry of Road Transport and Highways noting that after GST and the removal of interstate check posts, travel time for long-haul trucks and cargo vehicles fell by at least one-fifth, helping businesses improve turnaround time and optimize warehouse networks.

For instance, Amazon announced an investment of more than 2,000 crore rupees in India in 2025 to expand and upgrade its fulfilment, sortation, and delivery network, while Delhivery reported 20.10 million square feet of logistics infrastructure, 85 fulfilment centres, 158 processing centres, 111 gateways, 4,494 last-mile delivery centres, and 3.95 million kilometres driven per day in FY25, clearly showing how large private players depend on better road infrastructure to sustain scale and speed.

The government is reinforcing this ecosystem through freight-oriented infrastructure, and for instance NHAI signed an agreement to develop a 150-acre Multi Modal Logistics Park at Nagpur at an estimated cost of 673 crore rupees, with external rail and road connectivity designed to support warehouses, cold storage, container handling, and value-added logistics services. As e-commerce platforms, third-party logistics firms, and industrial supply chains continue to spread across urban and rural India, expressways, highways, and multimodal logistics corridors are becoming essential to lower delivery friction and strengthen India’s competitiveness in trade and distribution.

Technological Advancements and Sustainability Measures

The adoption of advanced technologies and sustainable practices is reshaping India’s roads and highways sector. Rising concerns about environmental impact and traffic management are encouraging authorities to implement modern solutions that strengthen road infrastructure and improve travel conditions.

Smart highways are emerging as a key development across the country. These roads include intelligent traffic management systems, or ITMS, FASTag-enabled digital toll collection, and automated monitoring tools that support better traffic regulation. Such systems reduce congestion, improve road safety, and create a smoother travel experience for users.

Sustainability remains a major focus for policymakers. Authorities are promoting eco-friendly construction materials and efficient building techniques, including the use of recycled materials and plastic waste in road construction. Energy-efficient lighting systems are also expanding across highway networks. Several projects now include solar-powered streetlights and electric vehicle charging stations that support India’s green mobility targets. The National Highways Authority of India is also planning dedicated electric vehicle lanes and charging corridors to support rising EV adoption.

The integration of artificial intelligence, the Internet of Things, and geographic information systems is strengthening road management across the country. These technologies support faster data analysis, improved traffic monitoring, and better infrastructure planning. As a result, India’s road network is becoming more efficient, safer, and better aligned with long-term environmental goals.

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Key Market Challenges

Land Acquisition and Environmental Concerns

Land acquisition remains one of the most significant challenges in India’s roads and highways sector, as disputes over compensation, encroachments, resettlement concerns, and multi-agency approvals continue to slow project execution and raise costs across national highway projects. The scale of the problem is substantial, with Road Transport Minister Nitin Gadkari stating that 419 out of 952 national highway projects worth at least 150 crore rupees had missed their original completion deadlines by March 2024 because of land acquisition bottlenecks, statutory clearance delays, utility shifting, encroachment removal, and law and order issues, while Maharashtra alone accounted for 59 delayed projects out of 101.

For instance, the Ministry of Road Transport and Highways responded by mandating from June 2025 that more than 90% of the right of way length must be acquired before bids are received, after reports showed that 55% of 374 road projects with a combined construction cost of 1 lakh crore rupees were delayed by more than six months as of December 2024. Environmental approvals add another layer of complexity because projects passing through forest, wildlife, and sensitive land parcels require multiple clearances, which is why the ministry has also moved to set pre-bid milestones for environmental, forest, and wildlife approvals to reduce time overruns and contractual disputes.

Authorities are trying to ease these pressures through policy reform and digital tools, and for instance the BhoomiRashi portal was introduced to fully digitize land acquisition for national highways, improve transparency, reduce notification delays, and streamline compensation payments, but balancing faster road expansion with fair compensation and environmental safeguards remains a continuing challenge for India.

Poor Road Maintenance and Traffic Congestion

Road construction has improved across India, yet maintenance and upkeep remain persistent challenges. Many roads, particularly in rural and semi-urban areas, deteriorate due to weak maintenance practices, inadequate drainage systems, and the use of substandard construction materials. Potholes, uneven surfaces, and damaged stretches create inconvenience for commuters, raise vehicle operating costs, and increase the risk of road accidents.

Rapid urbanization and rising vehicle ownership are placing growing pressure on the country’s road infrastructure. The number of registered vehicles has increased sharply in recent years, while road expansion has not progressed at the same pace. This imbalance results in frequent traffic bottlenecks, longer travel times, and higher levels of air pollution. Major metropolitan cities, including Delhi, Mumbai, Bengaluru, and Kolkata, experience daily congestion that affects productivity and fuel efficiency.

Inefficient traffic management and limited enforcement of road regulations also worsen congestion. Poorly designed junctions, limited road signage, and weak monitoring of traffic rules contribute to disorganized driving conditions. The absence of intelligent traffic systems, synchronized signals, and reliable public transport alternatives further intensifies congestion across urban corridors.

Authorities are introducing several measures to address these concerns. Performance-based maintenance contracts, digital monitoring systems, and increased private sector participation are being promoted to improve road quality. For congestion relief, infrastructure projects such as expressways, dedicated freight corridors, metro rail expansion, and smart traffic management systems are under development. Long-term planning and consistent investment remain essential for improving the country’s road network.

Key Market Trends

Expansion of Expressways and Greenfield Projects

India is expanding its network of expressways and greenfield highways to strengthen connectivity and improve transportation efficiency. Expressways are high-speed, access-controlled roads designed to support faster travel and handle rising vehicular traffic. As vehicle ownership grows and freight movement increases, these corridors are becoming a key focus for national infrastructure planning.

One of the most ambitious projects is the Delhi-Mumbai Expressway, which spans more than 1,300 kilometers. The corridor aims to reduce travel time between Delhi and Mumbai from about 24 hours to nearly 12 hours. Other major projects include the Bengaluru Chennai Expressway, the Ganga Expressway, and the Ahmedabad–Dholera Expressway. These corridors include automated toll collection systems, emergency response networks, and infrastructure prepared for electric vehicle charging.

Greenfield highway development is also gaining momentum across the country. Unlike traditional road expansion projects, greenfield highways follow entirely new alignments that reduce construction disruptions and improve route efficiency. The Bharatmala Pariyojana highlights this approach, focusing on new highways and economic corridors that support trade, logistics, and regional connectivity.

Government policies encouraging public-private partnerships and hybrid annuity models are drawing stronger private sector participation in highway development. These funding models distribute financial risk between authorities and investors, which accelerates project execution and supports long-term infrastructure expansion across India.

Digitalization and Smart Road Technologies

Digitalization and smart road technologies are transforming India’s roads and highways sector as the government moves from manual tolling and reactive monitoring toward automated payments, AI-led surveillance, and real-time infrastructure management. For instance, the government informed Parliament that 11.86 crore FASTags had been issued by December 2025, more than 98% of user fee on national highways was being collected through FASTag, and average daily ETC transactions had reached about 105 lakh with daily collection of around 186 crore rupees, showing how electronic tolling has become the backbone of seamless highway travel in India.

The next wave of this transition is already underway, with the Ministry of Road Transport and Highways stating that the advanced barrier-less tolling system will combine automatic number plate recognition with FASTag readers so that vehicles can be charged without stopping at toll plazas. Highway monitoring is also becoming smarter, as NHAI made drone surveys mandatory for all national highway projects and later expanded the programme to standardize drone imagery for AI and machine learning based remote project tracing and monitoring across multiple zones in India.

Private operators are scaling with this shift as well, and for instance IRB Infrastructure says it operates 72 toll plazas across India with 828 FASTag-compliant lanes, while the company reported that 96% of its Q1 FY25 toll collection came through FASTag. Together, digital tolling, drone-led highway supervision, and upcoming ANPR-enabled free-flow systems are making Indian roads safer, faster, and more efficient for both passenger and freight movement.

Rising Investment in Road Infrastructure

India’s road and highway sector is attracting massive investments from both domestic and international sources. The government has allocated substantial funds under initiatives like Bharatmala Pariyojana, National Infrastructure Pipeline (NIP), and Pradhan Mantri Gram Sadak Yojana (PMGSY) to develop highways, expressways, and rural roads.

Additionally, foreign direct investment (FDI) in India’s roads and highways sector is increasing, with global infrastructure companies and private equity firms showing interest in public-private partnership (PPP) projects. International players are also collaborating with Indian construction firms to build world-class highways and smart road networks.

To further attract investment, the government has introduced monetization initiatives such as the National Monetization Pipeline (NMP), which allows private companies to lease existing highway assets and generate revenue. This move not only provides funds for new infrastructure projects but also improves asset utilization and efficiency.

Moreover, financial institutions like the National Highways Authority of India (NHAI) and Infrastructure Investment Trusts (InvITs) are playing a crucial role in financing large-scale road projects. With a combination of public and private investments, India is set to witness unprecedented growth in its road infrastructure over the next decade.

Segmental Insights

Road Type Insights

National/Interstate Highways held the largest market share in 2024. National and Interstate Highways dominate India's roads and highways market due to their strategic importance, high traffic volume, and strong government investment.These highways form the backbone of the country’s transportation network, enabling seamless movement of goods, passengers, and economic activities across states.

Despite covering only 2% of India’s total road network, National Highways carry over 40% of total road traffic. They connect major cities, ports, industrial hubs, and logistics centers, making them essential for trade and commerce. The rapid growth of e-commerce, logistics, and freight movement has further increased reliance on National Highways for efficient transportation.

The Indian government prioritizes the expansion and modernization of National Highways through initiatives like Bharatmala Pariyojana, aimed at developing economic corridors, expressways, and border roads. Large-scale investments under the National Infrastructure Pipeline (NIP) and public-private partnerships (PPP) have accelerated highway construction. Additionally, the National Highway Development Project (NHDP) has played a key role in upgrading existing roads.

National Highways feature wider lanes, better pavement quality, digital toll collection (FASTag), and intelligent traffic management systems (ITMS). The government is also integrating electric vehicle (EV) charging stations, solar-powered lighting, and smart surveillance systems, making these highways more efficient and sustainable.

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Regional Insights

South India accounted for the largest share of the country’s roads and highways sector in 2024. The region benefits from strong economic growth, structured infrastructure planning, and its role as a logistics and industrial center. Continuous investment in connectivity projects and highway modernization has strengthened transport networks across southern states.

Economic activity across major cities has increased the need for reliable highway infrastructure. Key commercial hubs such as Chennai, Bengaluru, Hyderabad, and Kochi support manufacturing, information technology, and service sectors. These urban centers require efficient road connectivity with industrial zones, logistics hubs, and neighboring states. The expansion of logistics networks, e-commerce activity, and industrial corridors has further increased the need for high-quality highways across the region.

Strategic geography also strengthens South India’s importance in national transport networks. The region provides access to global trade routes through major ports, including Chennai Port, Visakhapatnam Port, and Kochi Port. These ports connect with interstate and national highways that support the movement of goods across industrial and commercial corridors. Projects such as the Chennai–Bangalore Expressway and the Eastern Peripheral Expressway strengthen connectivity between key production and trade centers.

Public investment in highway development has also increased across southern states. Programs such as the Bharatmala Pariyojana have supported the construction of multi-lane expressways, bypass roads, and regional highway corridors. These projects have improved road quality, reduced congestion, and supported economic expansion across the region.

Recent Developments

• In February 2026, NHAI accepted NHIT’s offer of Rs 6,220.90 crore for acquisition of two national highway stretches spanning 310.35 km across Maharashtra and Andhra Pradesh, taking total assets monetised through NHIT to about Rs 49,858 crore.
• In December 2025, the roads ministry highlighted that the BOT model concession agreement had been revamped for the first time since 2007-08 and that a public InvIT named Raajmarg InvIT was being readied, marking a significant sector-structure update for private highway investment.
• On February 2024, Under the Union Budget 2024-25, the Government of India allocated USD 32.68 billion to the Ministry of Road Transport and Highways.​
• National Highways Infra Trust (NHIT) raised USD 1.92 billion in InvIT round-3, stretches aggregate length of 889 kilometres of national highways, marking the largest transaction by the National Highways Authority of India (NHAI).

Key Market Players

• Dilip Buildcon
• Afcons Infrastructure Limited
• Bechtel Corporation
• Ferrovial SE
• Vinci
• Fluor Corporation
• Skanska AB
• Larsen & Toubro Limited

Report Scope:

In this report, the India Roads and Highways Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Roads and Highways Market, By Road Type:

o   National/Interstate Highways

o   State Highways

o   Other

• India Roads and Highways Market, By Components:

o   Road

o   Bridges/Tunnels/Culverts

o   Marking & Signage

o   Safety Equipment

o   Traffic Management System

o   Others  

• India Roads and Highways Market, By Process:

o   Maintenance

o   Expansion

• India Roads and Highways Market, By Region:

o   South India

o   North India

o   West India

o   East India   

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Roads and Highways Market.

Available Customizations:

India Roads and Highways Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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