New Delhi: Over the past eleven years, the Prime Minister Narendra Modi-led government has spearheaded an unprecedented expansion of India’s highway network and overall infrastructure, transforming the nation’s logistical landscape.
This ambitious drive is a cornerstone of India’s aspiration to become a 5 trillion dollar economy, with robust road infrastructure identified as critical for enhancing business competitiveness, improving the ease of doing business, and driving robust economic growth. This crucial investment aims to facilitate the crucial shift of the population from low-yield agriculture to a more productive manufacturing sector, supported by enhanced connectivity and reduced logistics costs.
Union Road Transport and Highways Minister Nitin Gadkari confidently projects a significant drop in India’s logistics costs, from the current 14 per cent of GDP to just 9 per cent within the next two years. This would bring India closer to global benchmarks set by major European countries, the US (around 12 per cent), and China (8 per cent). The impact of this infrastructural push is already evident, with an IIMC-TCI study noting an improvement in average truck speeds from 35 kmph in 2014-15 to approximately 50 kmph today.
India’s road network, already the world’s second largest at 6.67 million km, has seen remarkable growth in its national highway length, surging by 60 per cent from 91,287 km in 2014 to 1,46,195 km by December 2024. This expansion is largely attributed to flagship initiatives like the Bharatmala Pariyojana, which targets 34,800 km of highway development with an investment of Rs 5.35 lakh crore, enhancing connectivity in economic corridors, border areas, and remote regions. Complementing this, the PMGSY focuses on vital rural connectivity.
The government’s commitment is also reflected in the significant rise of public-private partnerships (PPPs), accounting for 826 out of 1,825 total road projects by February 2025. Furthermore, high-speed corridors have dramatically expanded from a mere 93 km to 2,474 km, with eight national projects covering 936 km at a cost of Rs 50,655 crore. Financial indicators underscore this massive investment, with Fastag collections projected at Rs 72,500 crore for FY25 and the NHAI recording its highest-ever capital expenditure of Rs 2,07,000 crore in FY24.
The PM Gati Shakti portal is playing a pivotal role in streamlining these developments, having assessed 208 major infrastructure projects worth over 180 billion dollars and identified 156 critical logistical gaps.
Road infrastructure remains a top priority among 81 high-impact projects, exemplified by key expressways like the Delhi-Mumbai (1,350 km), Amritsar-Jamnagar (1,257 km), and Saharanpur-Dehradun (210 km). This sustained investment is crucial, as estimates suggest India requires an additional 18–20 trillion dollars in infrastructure over 25 years to achieve its ambitious 25–30 trillion dollar economy by 2047.
