India’s Highway Construction Slows in FY25 as Land Acquisition Delays Impact Targets

India’s national highway construction pace witnessed a noticeable slowdown in FY25, with total construction reaching 9,380 km, falling below the government’s target of 10,000 km. This marks one of the lowest annual construction figures in recent years and reflects emerging challenges in project execution across the country.

According to officials from the Ministry of Road Transport and Highways, the shortfall has largely been attributed to delays in land acquisition and the time taken to secure statutory clearances. These factors continue to be critical bottlenecks in infrastructure development, often impacting timelines despite strong policy intent and funding support.

The slowdown becomes more evident when compared with previous years. India constructed 10,660 km of highways in FY24 and 12,349 km in FY23, indicating a significant drop in momentum during the latest fiscal. Even in FY22, highway construction stood above 10,000 km, highlighting how FY25 has deviated from the recent growth trend.

Another key factor contributing to the decline is the reduced pace of awarding new highway projects. The length of highway contracts awarded has seen a sharp fall, dropping from 12,376 km in FY23 to just 7,538 km in FY25. This decline in project awarding directly impacts the construction pipeline and future execution capacity.

Despite the slowdown, national highways continue to remain a critical component of India’s infrastructure growth story. The government has been consistently focusing on improving connectivity, reducing logistics costs, and boosting economic activity through road development.

However, industry experts believe that addressing land acquisition challenges and streamlining approval processes will be crucial for sustaining growth in the sector. Without timely interventions, these issues could continue to affect project timelines and overall infrastructure expansion.

As India pushes forward with its infrastructure ambitions, ensuring faster execution and a steady pipeline of projects will be essential to regain momentum in highway construction in the coming years.