India's Highway Toll Revenue Set to Cross ₹1 Trillion Mark by FY27
India's national highway toll collections are on track to smash the ₹1 trillion milestone in the financial year 2026-27. This surge comes as the country expands its high-speed road network and modernizes how it charges for road use.
Strong Growth Trajectory
Internal government projections show toll revenue jumping 25% to ₹75,000 crore in FY26. This follows collections of ₹61,408 crore in FY25. The growth builds on a resilient economy with GDP expected to expand 7.4% this year.
Traffic volume has already increased 15% year-on-year through December. This organic growth combines with aggressive infrastructure development to push toll collections higher.
Technological Transformation
The Ministry of Road Transport and Highways plans to roll out a satellite-based Multi-Lane Free Flow system nationwide by late 2026. This MLFF technology should plug revenue leakages and add at least ₹6,000 crore to annual collections.
The existing FASTag system continues to perform strongly. Toll revenue through FASTag surged over 15% year-on-year to exceed ₹50,000 crore in the first three quarters of FY26. The FASTag user base has reached 8 crore accounts.
Infrastructure Expansion
India's high-speed corridor network has grown dramatically. The length of operational access-controlled highways and expressways has skyrocketed from just 93 km in 2014 to 3,052 km today. This represents a staggering 3,182% increase.
The government expects another 200-300 toll plazas to become operational next year as 10,000-12,000 km of new highways open. This expansion directly contributes to rising toll collections.
As of June 2025, India has 1,087 operational toll plazas. Private operators manage 387 of these while the government runs 700.
Economic Indicators Align
Rising toll collections match other positive economic signals. Higher freight and passenger movement correspond with increased e-way bill generation. These indicators point to resilient logistics activity and steady economic momentum.
Rishi Shah of Grant Thornton Bharat notes that while network expansion and tariff revisions contribute to revenue growth, sustained traffic increases reflect underlying economic strength.
Financing Model Shift
The government is returning to the Build-Operate-Transfer model for highway projects. This shift uses predictable toll cash flows to reduce NHAI's reliance on federal budget support. The model allows capital recycling into new infrastructure projects.
The Centre plans to bid out 5,000 km of highway projects worth ₹75,000 crore under the BOT toll model. This approach had been largely dormant since 2014.
Analyst Perspectives
Government officials express confidence about reaching the ₹1 trillion mark in FY27. They cite operationalization of new highways and the MLFF system as key drivers.
Some analysts urge caution regarding the timeline. Icra's Suprio Banerjee suggests the ₹1 trillion milestone is more likely in the medium term rather than specifically in FY27. Icra estimates toll collections reaching around ₹0.70 trillion in FY2026.
Despite differing views on timing, all agree on the strong upward trajectory. The combination of economic growth, infrastructure expansion, and technological upgrades creates powerful momentum for India's toll collection system.
