India’s decision to recalibrate its highway construction targets for the fiscal year 2025-26 marks a significant shift in its infrastructure development strategy. While the overall target for highway construction has been reduced to 10,000 km from the previous 12,000 km, the focus has shifted sharply towards building access-controlled, high-speed corridors. This move, though seemingly a step back, is a calculated and forward-looking approach that prioritises quality over quantity, efficiency over expansion, and long-term economic integration over short-term gains. The reduction in highway construction targets is not a sign of stagnation but a reflection of evolving priorities. India is transitioning from high-volume, relatively straightforward projects to more complex, access-controlled corridors. These corridors, which regulate traffic entry and exit to ensure high-speed driving, require meticulous planning, advanced engineering, and longer execution timelines. The focus is now on creating a network that not only connects key economic hubs but also ensures seamless and efficient movement of goods and people.
The emphasis on access-controlled highways is a response to the growing need for faster connectivity between major economic centres. With the cumulative length of such corridors expected to reach 5,800 km by FY26, up from 2,474 km in December 2024, India is laying the foundation for a modern, high-speed road network to support its burgeoning economy. This shift aligns with global trends, where developed economies have long recognised the importance of high-speed corridors in driving economic growth and reducing logistics costs.
The reduction in the overall highway construction target should not be viewed in isolation. Over the past decade, India has made remarkable progress in expanding its national highway network, which has grown by 60 percent from 91,287 km in 2014 to 146,195 km in 2024. The length of four-lane and above national highways has more than doubled during this period, from 18,278 km to 45,947 km. However, the focus now is on enhancing the quality of the existing network and addressing bottlenecks that hinder efficient transportation. The Government’s plan to remove 1,000 black spots on national highways and conduct safety audits for 40,000 km of the network underscores its commitment to making Indian highways safer. This is a critical step, given that India accounts for a significant share of global road accidents. By addressing safety concerns, the Government is not only saving lives but also ensuring that the highways serve as reliable conduits for economic activity.
The shift in strategy is also evident in the Government’s approach to monetising highways. The National Highways Authority of India has revised its monetisation target downward to Rs. 30,000 crore for FY26, from Rs. 39,000 crore in FY25. This reduction is partly due to the lower construction and awarding of regular highway projects. However, the Government is simultaneously targeting to bring in more private capital, up to Rs. 35,000 crore, under the Build Operate and Transfer model. By focusing on multi-lane highways and access-controlled expressways, the Government is creating opportunities for private players to invest in high-return projects. This approach not only reduces the fiscal burden on the Government but also ensures that infrastructure development is driven by market dynamics and efficiency.
While the shift in strategy is commendable, it is not without challenges. The pace of highway construction is often hampered by supply-side issues such as land acquisition, preparation of viable project reports, compensation payments, and utility shifting. These bottlenecks must be addressed urgently to ensure the revised targets are met.
India’s decision to recalibrate its highway construction targets is a pragmatic move that aligns with its long-term vision of becoming a $5 trillion economy. The Government is laying the groundwork for a modern, efficient, and integrated road network by prioritising high-speed corridors, enhancing safety, and attracting private investment. This network will also drive economic growth by reducing logistics costs and improving connectivity. It’s not a choice but necessity. The road ahead may be challenging, but it is undoubtedly the right path for a better, more connected India.
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