New Delhi [India]: In a strong push toward improving national connectivity and reducing logistics costs, the central and state governments have announced a combined ₹3.9 lakh crore investment in road infrastructure projects for the financial year 2024-25 (FY25), according to a recent Bank of Baroda report.
The report underlines that these efforts are part of a larger public sector capital expenditure (Capex) drive worth ₹11.1 lakh crore announced in the Union Budget for FY25.
Central Government Allocation
The central government has allocated ₹1.42 lakh crore toward road infrastructure projects. Notably:
- Rajasthan will receive the largest share of this funding—₹0.67 lakh crore (47%)—for building 28 flyovers.
- Assam has been allocated ₹0.5 lakh crore (35%) to build 1,647 km of roads.
- Meghalaya will receive ₹0.25 lakh crore (18%) to construct 136 km of roads.
State Government Allocation
The state governments together plan to invest ₹3.7 lakh crore, with 67% (₹2.5 lakh crore) focused solely on road transport infrastructure:
- Gujarat leads among the states with projects worth ₹97,892 crore.
- Rajasthan follows with ₹87,438 crore for 2,829 km of roads.
- Odisha has also announced road infrastructure projects worth ₹27,400 crore.
Wider Investment Picture
The report also highlighted a total investment of ₹38.3 lakh crore announced across sectors for FY25—the second-highest ever since FY1995-96.
- 69% of this comes from the private sector (both domestic and foreign).
- The public sector contributes the remaining 31%, including the central and state governments, local bodies, and joint ventures.
Among private investors:
- Domestic firms account for 62% of total private sector investments.
- Renewable electricity, conventional power, chemicals, and steel are some of the key focus areas beyond roads.
Strategic Impact
This coordinated push in road infrastructure is expected to:
- Improve last-mile connectivity across urban and rural areas.
- Boost economic growth through better logistics and supply chain efficiency.
- Enhance employment generation and regional development, particularly in states like Rajasthan, Gujarat, and Assam.