Invest In India
ROADS & HIGHWAYS
- A major contributor towards a country’s economic growth is its steady infrastructure,
and roads are one of the major components of such infrastructure facilities.
- India has one of the largest road networks across the world, spanning over a total of 5.5
million km that transports 64.5% of all goods in the country. 90% of total passenger
traffic uses the road network to commute.
- The Government launched the Bharatmala Pariyojana, that aims to build 66,100 km of
economic corridors, border and coastal roads, and expressways to boost the highway
network.
- This programme will provide 4 – lane connectivity to about 550 districts, increasing the
vehicular speed by 20-25% and reducing supply chain cost by 5-6%.
- According to FDI policies for roads-highways sector, 100% FDI for roads and highways
is allowed under the automatic route.
- The highways sector in India has been at the forefront of performance and innovation.
The government has successfully rolled out over 60 projects worth over $10 bn based
on the Hybrid Annuity Model (HAM).
- Investment opportunities include Multi-modal logistics parks (35 such parks have been
identified for development in Phase 1 of Bharatmala Pariyojana).
- Large production of two wheelers, three wheelers, passenger and commercial vehicles
would require a stronger road network in India.
- Government has cut GST rate on construction equipment from 28% to 18%. This step is
expected to boost the industry.
