ICRA Report Forecasts Addition of 13,000 Kilometers of Highways in India for 2024-25

India is poised to continue its robust trajectory of road development, aiming to add approximately 13,000 kilometers of roads in the fiscal year 2024-25, marking a rise of 5 to 8 percent compared to the previous year. This projection stems from a recent report unveiled by the esteemed rating agency ICRA.

The report highlights that the ongoing fiscal year will witness a brisk pace of execution, supported by a substantial pipeline of projects totaling over 45,000 kilometers as of March 2024. Moreover, bolstered by an increased capital outlay by the government and a steadfast commitment to project completion by the Ministry of Road Transport and Highways, the momentum is expected to remain strong.

Under the leadership of Prime Minister Narendra Modi, the government has achieved remarkable milestones in the realm of infrastructure development, particularly in the construction of national highways. Official data indicates that over 90,000 kilometers of national highways have been constructed during the tenure of Modi's administration, nearly doubling the figure from the preceding decade.

Government investment in highway infrastructure has witnessed a significant surge, escalating from Rs 51,000 billion crore in 2013-14 to Rs 2.4 lakh crore in 2022-23, indicative of the administration's unwavering commitment to enhancing transportation networks.

While acknowledging the challenges posed by adverse weather conditions, such as prolonged monsoons in certain regions, the report underscores a notable recovery in road construction activities during the latter half of the fiscal year 2023-24. This resurgence resulted in a remarkable year-on-year surge of 30 percent in road construction during the second half of the fiscal year, culminating in an overall growth of approximately 20 percent for the entire fiscal year.

Vinay Kumar, Vice President and Sector Head of Corporate Ratings at ICRA, expressed confidence in the sustainability of the road construction momentum, foreseeing continued growth in FY2025 and beyond.