Understanding Indian Road Construction Industry 

India ranks 2^nd globally with 6.6 million KM of roadways after the US (6.8 million KM) as of FY25. This includes state highways, national highways (NH), urban and district road. The infrastructure sector is expected to grow by 8% CAGR annually from CY24 to CY30, driven by investments in roads, highways, railways, metros and water supply.  This sector contributes 1.53 % of GDP and plays a crucial role in economic growth as well as first- and last-mile connectivity. The main participants include the National Highways Authority of India (NHAI), state agencies, and the private sector. India, (NHAI) state agencies and private sectors. 

Of the total 6.6 million km of roadways, national highways account for 2% (40% Freight Volume), state highways 3%, and other roads 95%. Road transport is the most common mode of transportation, accounting for 87% of passenger traffic. Freight movement by road constitutes 71% of the country’s total freight volume, while railways account for 18%, airways 9%, and inland waterways 2%. Growth in freight volume is driven by core industries such as cement, steel, automobiles, and FMCG goods. E‑commerce has significantly boosted demand for first‑mile and last‑mile connectivity, as well as regional distribution. Going forward, railways are expected to gain share due to a strong focus on dedicated freight corridors. 

Key Drivers of Roadways Growth in India 

• Growing population and economic development 

• Government of India (GoI) announcement of 17,000 km of expressways by 2033 

• Upgradation of 2‑lane roads to 4‑lane and 4‑lane roads to 6‑lane 

• Government initiatives such as the National Infrastructure Pipeline (NIP) and Bharatmala Pariyojana 

• Increase in road development pace from 15 km/day to 29 km/day 

• Public‑Private Investment models including HAM, TOT, and BOT 

• Allowance of 100% Foreign Direct Investment (FDI) 

• Innovation and efficiency through the adoption of digitalization and Artificial Intelligence (AI) 

 India 2027 Vision 

• Establish 50 national corridors 

• Connect 550 districts across India 

• Increase freight movement share from 40% to 70% 

• Integrate highways with logistics parks 

The materials used in road construction include, but are not limited to asphalt, bitumen, cement, and steel. Head over to ConstroMat.com, explore our catalogue, or drop us a line at sales@constromat.com. Let’s build India’s roads—and your success—together. 

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