Updated on May 06, 2025 02:36:56 PM
Roads are the instant way to explore certain destinations until the connectivity lays down the perfect track for road warriors who often find themselves on road despite the existence of his/her perfect homestay. But roads can be beautiful if the connectivity and systematic networking can automatically run carriage towards fixed destinations without negotiating through craters and potholes.
With a road network that spans around 66.71 lakh kilometers and consists of district, state, national, and rural roadways, India has the second largest road network in the world. All parts of the nation are connected thanks to this vast network.
Because they facilitate the efficient flow of people and goods and enhance market accessibility, national highways (NH) are vital to the nation's economic and social development. They transport more than 40% of all traffic yet only make up 2% of the entire road network.
The methodical push through corridor-based National Highway development technique has caused the speed of NH building to steadily accelerate, from roughly 12 km/day in 2014–15 to roughly 28.3 km/day in 2022–2023. With 6.3 million kilometers (km) of roads, India boasts the second-largest road network in the world.
90% of all passenger traffic in India travels by road, and 64.5% of all products transported in the nation are moved via this network. As the nation's connectivity between its cities, towns, and villages has improved over time, road transportation has progressively risen. Car sales and freight transportation on Indian roadways are expanding promptly.
The Economic Survey states that there has been a rise in the building of roads and National Highways (NHs) throughout time, with 10,457 km of new roads built in FY22 compared to 6,061 km in FY16. In India, investment has been raised by NHAI InviT for FII and DII (up to 2022) valued at $102 Bn.
Road infrastructure development has been a focus of the Indian government's recent investments. The goal of large-scale projects like the Bharatmala Pariyojana is to improve and extend the road network by building feeder roads, expressways, and economic corridors. 34,800 km of highways, including 27 Greenfield corridors and India's largest expressway (the 1,386 km Delhi-Mumbai Expressway), would be developed in the first phase of the program. Thirty percent of projects under the Pariyojana are in the EPC form, ten percent are in the BOT (toll) mode, and sixty percent are in the Hybrid Annuity form (HAM).
To participate in FDI in the roads and highways sector for expanding collaboration with foreign countries to envisage transformation in dometic upbringing, the applicants are required to register under the Foreign Investment Facilitation Portal (FIFP). The procedure might be puzzling for any newcomer applicant since it incorporates several terms and conditions without rendering direct access to portals that can generate approvals for FDI.
Table of Content
Following are the objectives of FDI in roads and highways sectors:
100% FDI is allowed under FDI in roads and highways sectors through an automatic route.
Many documents are required for FDI in the ports and shipping industry which are as follows:
Following are the procedures which required at the time of FDI in the roads and highways development sector:
Applicants must fill out the online application form along with the relevant documents for making out the proposal for Foreign Direct Investment
Filing the proposal for FDI online within two working days, DIPP then will address the concerned administrative ministry to transfer the proposal of applicants electronically
Collect all the requisite documents for continuing the process of the investment proposal. In case documents may be found incorrect, applicants will be held responsible in case of any deviation found.
The DIPP along with potential authorities will process the application internally and recognize various ministries for adding several comments such as the Ministry of Home Affairs, Reserve Bank of India, Ministry of External Affairs, Ministry Of Finances, etc.
There are conditions tapping for the procedure of FDI approval which must be understood by investors.
The advantages which has been derived from FDI in roads and highways sector for various stakeholders:
Following are the benefits of FDI in roads and highways when investors invest in this sector:
In the road sector, foreign direct investment (FDI) has the potential to spur development and provide substantial advantages for both foreign investors and the host nation. FDI provides much-needed funding for the construction and renovation of tunnels, bridges, and highways. Better connectivity, shorter travel times, and easier access to markets and services are the results of this, which eventually spurs economic growth. Roads become more effective, safer, and ecologically friendlier when cutting-edge construction technologies and sustainable practices are transferred thanks to foreign direct investment (FDI).
Several other factors to consider for investors while investing in heavy industries are listed below:
Investors must also need to check eligibility criteria for buying investment in India in sectoral companies.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
Frequently Asked Questions
As part of a plan to combat poverty, the Indian government introduced the Pradhan Mantri Gram Sadak Yojana (PMGSY) to connect disconnected areas.
The different initiatives taken by the government of India to the development of Highways includes— Project Monitoring Information System (PMIS), Green Highways Division in NHAI, Bhoomi Rashi, Toll-Operate-Transfer (ToT) and Eastern Peripheral Expressway – Western Peripheral Expressway.
The objective of the Bharatmala Pariyojana program is to maximize the effectiveness of freight and passenger movement throughout the nation by filling in critical infrastructure gaps with efficient interventions such as the construction of greenfield expressways, inter corridors and feeder routes, economic corridors, border and international connectivity roads, coastal and port connectivity roads, and national corridor efficiency improvement.
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