A new report paints a sobering picture for India's ambitious road infrastructure development, forecasting a significant slowdown in the construction of national highways for the upcoming financial year. The pace of building is expected to dip to its lowest level in nearly a decade.
Projected Slowdown in Construction Pace
According to a report by India Ratings and Research (Ind-Ra), the construction of national highways in India is anticipated to be in the range of 9,000 to 9,500 kilometres during the financial year 2025-26 (FY26). This projection indicates a notable decline of 10% to 15% compared to the previous year (FY25).
This slowdown marks a continuation of a recent trend. The estimated construction for FY25 stands at 10,660 km, which itself is a step down from the 12,349 km achieved in FY24. The FY24 figure was a recent high, following the 10,331 km constructed in FY23. The projected FY26 output would be the lowest annual construction since FY18, highlighting a persistent challenge for the sector.
Underlying Challenges for the Highway Sector
The report suggests that the highway sector is currently grappling with multiple headwinds that are contributing to this deceleration. While not explicitly detailed in the brief, industry analysts often point to factors such as delays in land acquisition, prolonged environmental clearances, funding constraints, and rising input costs as major hurdles.
These bottlenecks can slow down project awarding and execution, ultimately reflecting in the yearly construction kilometre data. The sector's ability to navigate these infrastructure development challenges will be crucial for reviving growth momentum.
Implications for India's Infrastructure Goals
A sustained slowdown in highway construction has broader implications for India's economy. Robust road development is a critical component of the nation's logistics network, impacting everything from freight movement costs to regional connectivity and economic growth.
The dip comes at a time when the government has been emphasising large-scale infrastructure projects to boost the economy. The findings from the Ind-Ra report, credited to Mrityunjay Bose and published on 06 January 2026, will likely prompt a closer examination of the policy and execution frameworks governing the highway sector to identify and address the key pain points.
Stakeholders will be watching for corrective measures and policy interventions that could help streamline processes, attract investment, and accelerate project completion to get India's highway construction back on a faster track.
