Massive Infra Push! Modi Govt Plans To Build 17,000 km Expressways With Rs 11 Lakh Crore Investment

New Delhi: India is planning a massive expansion of its high-speed road network, with the aim of multiplying its size five times within the next decade.

According to a Bloomberg report, the government will invest about Rs 11 lakh crore ($125 billion) to modernise transport infrastructure, cut logistics costs, and provide faster connectivity across the country.

17,000 km of Expressways

The plan involves building 17,000 kilometres of access-controlled expressways, where motorists can travel at speeds of up to 120 kilometres per hour. These roads are designed to be safer, more efficient, and quicker than traditional highways.

People familiar with the matter told Bloomberg that nearly 40% of the proposed network is already under construction and should be completed before 2030. Work on the remaining projects is expected to begin by 2028 and finish by 2033.

Global Comparisons

India’s move comes as other large economies continue to expand their expressway networks. China has already built more than 180,000 kilometres of expressways since the 1990s, while the United States maintains over 75,000 kilometres of interstate highways.

India, by comparison, has a national highway network of more than 146,000 kilometres as of March this year, but only about 4,500 kilometres meet high-speed standards.

Hybrid Financing Model

Although India’s expressway plan is smaller in scale compared to China or the U.S., Bloomberg noted that its aggressive timeline and unique financing structure make it stand out. The government will use a hybrid model to attract private investment.

Projects expected to generate strong returns of 15% or more will be bid out under the Build-Operate-Transfer (BOT) model, allowing private developers to recover costs through toll collections.

Projects with lower projected returns will follow the Hybrid Annuity Model (HAM), where the government pays 40% of construction costs upfront.

Also Read: Will Your Shopping Get Cheaper This Festive Season?

Private Participation Challenges

Most of the ongoing expressway projects are currently under HAM. However, officials hope the BOT model will bring in more private players in the coming years.

Private interest in the road sector has been weak in recent years, Bloomberg reported, even though the government has been steadily increasing its spending.

The National Highways Authority of India (NHAI), which leads the program, spent a record Rs 2.5 trillion on road construction in the last fiscal year ending March, a 21% jump from the previous year.

For the year ending March 2026, the budget allocation for roads and highways has been raised further to Rs 2.9 trillion.

Rising Global Investor Interest

While investor enthusiasm for highways has been mixed, the broader infrastructure sector in India is seeing strong global interest. Firms like Brookfield Asset Management, Blackstone, Macquarie, and the Canada Pension Plan Investment Board have all invested in Indian infrastructure.

Domestic groups such as the Adani Group have also announced massive expansion plans, including an $18.4 billion investment across infrastructure projects.

Deloitte India estimates that the country could attract hundreds of billions of dollars in infrastructure funding over the next three years, driven by government support, rising demand, and the scale of projects underway.