India’s national highway network has grown sharply over the last decade, becoming the second-largest in the world. The total length now stands at 146,560 km, compared with 91,287 km in 2014, an expansion of over 61%. The increase has largely come from the push to build high-speed corridors and four-lane highways under the Bharatmala Pariyojana. The government’s next phase of road building is expected to focus on access-controlled highways, with greater use of technology and sustainability measures in construction. For 2025–26, the Ministry of Road Transport and Highways has been given a budget allocation of more than Rs 2.87 lakh crore. Within this, the ministry has identified a 13,400-km pipeline of projects to be developed through the public-private partnership (PPP) model. These projects are estimated to involve an investment of about Rs 8.3 lakh crore and are planned to be rolled out over the next three years, ET reported. The ministry is also preparing to launch a public infrastructure investment trust, Raajmarg InvIT. Through this route, around 1,500 km of completed and operational national highways are expected to be brought to the market over the next three to five years. The idea is to raise funds that can be used for future highway development. Despite the scale of expansion, the sector continues to face several bottlenecks:
- Project approvals have slowed.
- Issues around quality and timely execution remain.
- Developers also point to the requirement of completing 80% land acquisition before work begins.
- Cost overruns and contractual disputes also face persistent challenges.
What Budget 2026 should focus on?
- Making an umbrella scheme to speed up approval
- Continuing with capital expenditure approvals
- Laying out a clear roadmap for higher monetisation
The Confederation of Indian Industry (CII) has suggested setting up a National Infrastructure Guarantee Corporation. The proposal is aimed at improving investor confidence, reducing financing costs and helping unlock stalled projects.