From The Economic Times · ANI · · 1m 20s
India Road Construction Pace Slows to 21 km/day in FY27
India's road construction pace expected to drop to 21 km/day in FY27 as state capex outpaces central spending.
In brief
India's road construction pace expected to drop to 21 km/day in FY27 as state capex outpaces central spending. India's road construction pace will slow to 21 km per day in FY27 due to lower highway awards and execution challenges, with state governments driving more road capital expenditure than the central…
Road Construction Pace Declines
India's road construction pace is expected to slow to around 21 km per day in FY27 from 25 km per day in FY26.
State Capex to Outpace Central Spending
CareEdge Ratings expects state road capex to outpace central capex in FY27 due to greater focus on regional connectivity.
Construction Pace Moderation
The pace of road construction declined from 36.8 km per day in FY21 to 25 km per day in FY26 and is expected to moderate further to 21 km per day in FY27.
Lower Highway Awards Impact
National highway awarding activity has declined from 12,731 km in FY22 to an estimated 7,000 km in FY26, affecting FY27 construction.
Sector Transition to Execution Quality
The Indian roads sector is transitioning from rapid expansion to execution quality, operationalisation and asset monetisation.
“The Indian roads sector is transitioning from a phase of rapid expansion to one centred on execution quality, operationalisation and asset monetisation”
Asset Monetisation Challenges
Softer valuation multiples and limited mature toll assets could moderate the pace of asset monetisation in FY27.
The big picture
India's road construction pace will slow to 21 km per day in FY27 due to lower highway awards and execution challenges, with state governments driving more road capital expenditure than the central government.
