As Budget 2026 comes into focus, one thing is already clear from the data on the table—India’s push on road infrastructure has been steady, deliberate, and data-backed. Over the past five years, the Ministry of Road Transport and Highways (MoRTH) has remained one of the most strongly supported arms of government capital spending, with allocations rising year after year.
This isn’t a sudden burst of spending. It’s a long, visible trend—one that shows how roadways have slowly become central to the government’s capital expenditure playbook.
Market Performance: Roadways Spending Shows Consistent Growth
The budget numbers over the last five years tell a simple story—road infrastructure has stayed in focus, regardless of broader economic cycles.
Budgetary allocations to the road sector have nearly tripled since FY21:
- FY21: Rs 99,159 crore
- FY22: Rs 1,23,551 crore
- FY23: Rs 2,17,089 crore
- FY24: Rs 2,75,986 crore
- FY25 (Revised Estimates): Rs 2,80,519 crore
- FY26 (Budget Estimates): Rs 2,87,333 crore
The sharp jump between FY22 and FY23 marks a clear inflection point. Since then, allocations have remained elevated, with incremental increases each year. For Budget 2026, the continued rise reinforces the role of roadways as a long-term capital asset rather than a short-term spending lever.
Main News: Budget 2026 Keeps Roads at the Core of Capex
Under Budget 2026, roadways continue to anchor the government’s capital expenditure strategy. The FY26 allocation of Rs 2.87 lakh crore signals continuity rather than change. Roads remain a central pillar in the broader infrastructure narrative.
What stands out is not just the size of the allocation, but its consistency. Despite execution challenges and logistical constraints, funding support has stayed intact. This underlines the priority given to connectivity, logistics efficiency, and national highway development.
Company & Sector Details: How the Highway Network Has Evolved?
This sustained funding has directly shaped India’s highway footprint.
Over the past decade, the national highway network has expanded by about 61%, reaching 1,46,560 km. But the shift hasn’t been about length alone.
There has been a clear move toward quality and capacity:
- Higher share of four-lane-and-above highways
- Rapid expansion of access-controlled expressways
- Growth in operational high-speed corridors
Wider roads and expressways now account for a much larger portion of the network, reflecting a change in how road infrastructure is being planned and executed.
Project Pipeline and Monetisation: The Next Phase
Beyond budget allocations, MoRTH has outlined a sizeable execution pipeline.
Over the next three years:
- 13,400 km of projects are planned under the PPP model
- Estimated investment: Rs 8.3 lakh crore
Alongside project development, asset monetisation remains active. Highways are being bundled under structures such as:
- Toll-Operate-Transfer (ToT)
- InvIT models
The proposed Raajmarg InvIT aims to bring operational highway stretches to the market, unlocking capital from existing assets and recycling it into new projects.
Execution Challenges Still Persist
While funding and planning remain strong, on-ground execution continues to face hurdles.
Key challenges include:
- Slower project approvals
- Land acquisition requirements, including the 80% land-in-hand rule
- Quality-related issues
- Cost overruns
- Contractual disputes
These factors have, at times, stretched project timelines and added pressure on execution efficiency.
Budget 2026 in Context: What the Data Ultimately Says?
Looking purely at the numbers, Budget 2026 reinforces a clear policy direction. Roadways are not a one-year priority—they are part of a long-term infrastructure strategy backed by rising allocations, expanding networks, and structured monetisation plans.
From Rs 99,159 crore in FY21 to Rs 2,87,333 crore in FY26, the journey of roadways spending reflects a deliberate build-out of national connectivity.
Summary
- Roadways allocations have nearly tripled in five years
- Budget 2026 maintains high capital support at Rs 2.87 lakh crore
- National highways have grown to 1,46,560 km, up 61%
- Focus has shifted toward expressways and wider highways
- A 13,400-km PPP pipeline and Rs 8.3 lakh crore investment plan is in place
- Execution challenges remain a key factor to watch
As Budget 2026 unfolds, the roadways story is less about surprises and more about consistency—steady spending, visible expansion, and a clear long-term infrastructure push driven by hard numbers.
Source: Times of India
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