In a significant shift in infrastructure strategy, India has recalibrated its highway construction targets, emphasizing quality over quantity. The Ministry of Road Transport and Highways (MoRTH) has set a target of constructing 10,000 km of highways in the financial year 2025-26 (FY26), down from 12,000 km in FY25. This decision reflects the government’s renewed focus on developing high-speed, access-controlled expressways to improve connectivity between key economic hubs, rather than merely expanding the length of traditional highways.
The Rise of High-Speed Corridors
The government plans to complete 3,300 km of access-controlled highways in FY26, a substantial increase from previous years. These high-speed corridors, designed to regulate traffic entry and exit points, ensure uninterrupted travel and faster connectivity. By the end of FY26, the cumulative length of such operational corridors is expected to reach 5,800 km, up from 2,474 km as of December 2024. This marks a significant leap in India’s efforts to modernize its highway network and reduce travel time between major cities.
Access-controlled highways, often referred to as expressways, are a game-changer for India’s transportation infrastructure. They are designed to minimize interruptions, such as traffic signals and intersections, allowing vehicles to travel at higher speeds. This not only enhances efficiency but also reduces fuel consumption and emissions, contributing to environmental sustainability.
Decline in Overall Highway Construction
While the focus on high-speed corridors is intensifying, the overall highway construction target has been reduced. India constructed 12,349 km of highways in FY24, 10,331 km in FY23, and 10,457 km in FY22. However, the target for FY26 has been scaled back to 10,000 km. This reduction is not a sign of slowing progress but rather a strategic shift toward more complex and impactful projects.
Jagannarayan Padmanabhan, Senior Director and Global Head (Transport, Mobility, and Logistics) at Crisil Market Intelligence and Analytics, explains, “The reduction in highway construction targets reflects a natural progression from high-volume, straightforward projects to more complex, access-controlled corridors. These projects require longer planning and execution timelines but are crucial for improving efficiency and integrating highways with logistics and urban transport systems.”
Private Investment and Monetization Targets
To support this ambitious plan, the government aims to attract ₹35,000 crore in private capital through the Build-Operate-Transfer (BoT) model in FY26. This model allows private players to build and operate highways for a specified period before transferring ownership back to the government. It has proven effective in mobilizing resources and accelerating infrastructure development.
However, the monetization target for the National Highways Authority of India (NHAI) is expected to drop to ₹30,000 crore in FY26, down from ₹39,000 crore in FY25. This reduction is attributed to slower construction and awarding of regular highway projects. In FY24, the NHAI raised ₹40,314 crore by handing over highways to private contractors for toll collection and maintenance. The focus now is on leveraging private investment for high-speed corridors, which offer higher returns and greater economic impact.
Growth in Four-Lane Highways
Despite the emphasis on high-speed corridors, the length of four-lane highways is expected to grow by 8% in FY26. Over the past decade, national highways with four or more lanes have more than doubled, from 18,278 km to 45,947 km as of December 2024. This expansion has played a critical role in improving connectivity across the country, particularly in rural and semi-urban areas.
Four-lane highways are essential for accommodating increasing traffic volumes and supporting regional economic development. They provide a balance between speed and accessibility, making them a vital component of India’s highway network.
Challenges and Opportunities in Highway Development
While the shift toward high-speed corridors is a step in the right direction, it comes with its own set of challenges. Kuljit Singh, Partner and National Leader (Infrastructure) at EY India, highlights the need for faster pre-development activities, such as land acquisition, utility shifting, and encroachment removal. “The low rate of highway construction is more of a supply-side issue. Addressing these bottlenecks can unlock significant potential for highway development and expansion,” he said.
Land acquisition remains one of the most significant hurdles in infrastructure projects. Delays in acquiring land can lead to cost overruns and project delays, discouraging private investment. Additionally, the preparation of viable project reports, compensation payments, and environmental clearances are critical steps that require streamlining.
The Road Ahead: A Vision for Smarter Infrastructure
India’s revised highway construction strategy underscores a commitment to building smarter, faster, and more efficient road networks. By prioritizing high-speed corridors and attracting private investment, the government aims to transform the country’s infrastructure landscape. This approach aligns with the broader vision of enhancing connectivity, reducing logistics costs, and boosting economic growth.
The focus on access-controlled expressways is particularly significant in the context of India’s growing economy. As the country aims to become a $5 trillion economy, efficient transportation infrastructure will play a pivotal role in facilitating trade, commerce, and industrial growth. High-speed corridors will not only reduce travel time but also improve the overall efficiency of the logistics sector, which is critical for India’s global competitiveness.
Environmental and Economic Benefits
High-speed corridors also offer environmental benefits. By reducing travel time and fuel consumption, they contribute to lower carbon emissions and improved air quality. Additionally, the integration of highways with urban transport systems can help decongest cities and promote sustainable urban development.
From an economic perspective, the development of high-speed corridors is expected to create jobs, stimulate local economies, and attract foreign investment. The construction and operation of these projects will generate employment opportunities, while improved connectivity will enhance the ease of doing business in India.
Conclusion
India’s decision to lower its highway construction target for FY26 is not a step back but a strategic move toward building a more efficient and sustainable transportation network. By focusing on high-speed corridors and leveraging private investment, the government is laying the foundation for long-term economic growth and development. As the country continues to modernize its infrastructure, the benefits of these efforts will be felt across sectors, from logistics and trade to tourism and manufacturing.
This shift in strategy reflects a deeper understanding of the evolving needs of a rapidly growing economy. By prioritizing quality over quantity, India is setting a new standard for infrastructure development, one that balances speed, efficiency, and sustainability.