First thing’s first. Do you know?

👉 India currently has the second-largest road network in the world, spanning a total of 6,331,791 kms (USA ranks first) 

👉 In recent years, road transportation has gradually increased with improvement in connectivity between cities, towns, and small villages 

👉 India’s road network is the busiest (No kidding!)

👉 In the last nine years, the total length of the national highways in India has increased by 59% from 91,287 kms (2013-14) to 145,240 kms (2022-23)

👉 Due to the rapidly growing economy, automobile availability, and improved road connectivity, there has been a steady growth in road mobility (and pollution too!)

👉 Every year, highways carry around 85% of people and 70% of freight traffic (the percentage is likely to increase in the near future)

In 2020, 70% of Indian roads were paved. New data of 2023 shows that India has completed over 35,000 kms of four or more lane highways connecting many of its major manufacturing, commercial and cultural centers. 

What amuses us is the fact that even during the pandemic and lockdown, India managed to construct 10,457 kms of highways in FY22. 

Now, let’s look at what’s in the pipeline in terms of key road and highway developments: 

✔️ The Government aims to construct 65,000 kms of national highways at a cost of Rs. 5.35 lakh crore 

✔️ A total of 202 national highways are at the implementation stage in the country and are 6,270 kms in length

✔️ A network of 35 Multi-Modal Logistics Parks are planned to be developed as part of Bharatmala Pariyojana, with a total investment of about Rs. 46,000 crore, which can handle around 700 MMT of cargo 

✔️ The Government of India has allocated Rs. 111 lakh crore under the National Infrastructure Pipeline for FY25 (The roads sector is likely to account for 18% capital expenditure over FY25.)

“Private investments in the highway sector would likely rise from around Rs. 20,000 crore a year now to nearly Rs. 1 trillion in the next 6-7 years”, says Mr. Amit Kumar Ghosh, additional secretary, Ministry of Road Transport and Highways. 

In addition to that as declared in the recent Union Budget 2023-24, the Government of India has decided to allocate Rs. 2.7 lakh crore to the Ministry of Road Transport and Highways.

With growth in the infra sector, businesses associated with the development of roads and highways positively impact the economic development of the nation. Industries like Steel, Transportation, Automobile, Engineering, Architecture, and Heavy Civil Engineering are directly involved in the development of roads and highways. As a result, the chances of their stock prices surging in value increase tremendously. 

Oh, and let’s not forget about the newly emerging Energy Sector! EVs require specialized infrastructure for their production as well as plug-in stations. And today, with the increasing number of EVs, the need for charging infrastructure has become inevitable.

According to the studies conducted by RBI and the National Institute of Public Finances and Policy, for every rupee spent on infrastructure, there is a 2.5 to 3.5 rupee gain in GDP. Crazy, right? 

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In case you haven’t heard about All Rounder yet, you’re missing out on some of the easiest ways to optimize your investments substantially.

Source: ibef.org, ensureias.com, wikipedia.org

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